CSX Announces Advances on Future Wage Adjustments for Unionized Operations Employees

Rhea-AI Summary

CSX Corp. announced a tentative agreement with SMART-TD to provide monthly advance payments for wage adjustments expected from the 2020 national bargaining settlement. Payments of up to $600 will be made from May 2022 until the end of the year or until a wage settlement is reached. This decision aims to support union employees facing high inflation and prolonged wait times for pay raises. CSX is also working to extend similar agreements to all unionized employees. The ongoing negotiations began in November 2019 and are currently under mediation.

Positive

• Tentative agreement to provide $600 monthly payments, aiding employees facing inflation.
• Commitment to extend similar financial support to all unionized employees.

Negative

• Ongoing negotiations since November 2019 may create uncertainty for employees.
• High inflation and prolonged wait for wage adjustments may impact employee morale.

JACKSONVILLE, Fla., April 19, 2022 (GLOBE NEWSWIRE) -- CSX Corp. (NASDAQ: CSX) today announced it has reached a tentative agreement with the Sheet Metal, Air, Rail and Transportation Workers, Transportation Division (SMART-TD) to provide SMART-TD Trainmen and Yardmasters with monthly advance payments on future wage adjustments anticipated in settlement of the 2020 round of national bargaining between rail labor and the Class I railroads. CSX also notified its other labor organization representatives that it intends to reach agreements to provide identical payments to all unionized employees.

James M. Foote, president and chief executive officer of CSX, said: “Our union employees have waited nearly two years for a pay raise and are now dealing with the challenge of high inflation. This tentative agreement with SMART-TD is good for our employees, and we are committed to working with all of our labor unions to get this done for all union employees, who should not be left behind for months and months as we await the complex issues in national bargaining to be settled.”

The tentative agreement with SMART-TD provides that the monthly payments of up to $600 would be made from May 2022 through the end of the year, or until negotiated wage settlement is reached, whichever is earlier. The advance payments would be deducted from any retroactive or future pay increases that may be agreed upon at national bargaining.

The 2020 round of bargaining began in November 2019, and the National Rail Carrier Conference and the labor coalitions are currently in mediation before the National Mediation Board. It is unclear how long it may take for negotiations to conclude. CSX has advised its labor unions and seeks their agreement to implement these advances, as required under the Railway Labor Act.

Jamie Boychuk, executive vice president of Operations, CSX, said: “We know that collective bargaining in the rail industry tends to take years. We also know that our union-represented operations employees are suffering from the broader economic challenges. These are unprecedented times, and our operations employees have delivered for our customers, communities and the nation through the pandemic, on-going supply chain disruptions, and higher housing, food and fuel prices. It’s time we recognize their efforts and the difficult circumstances they and their families are facing by providing some relief through these fair and rightly earned wage adjustments.”

About CSX

CSX, based in Jacksonville, Florida, is a premier transportation company. It provides rail, intermodal and rail-to-truck transload services and solutions to customers across a broad array of markets, including energy, industrial, construction, agricultural and consumer products. For nearly 200 years, CSX has played a critical role in the nation’s economic expansion and industrial development. Its network connects every major metropolitan area in the eastern United States, where nearly two-thirds of the nation’s population resides. It also links more than 230 short-line railroads and more than 70 ocean, river and lake ports with major population centers and farming towns alike. More information about CSX Corp. and its subsidiaries is available at www.csx.com. Like us on Facebook (http://facebook.com/OfficialCSX) and follow us on Twitter (http://twitter.com/CSX).

Forward-looking Statements

This information and other statements by the company may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act with respect to, among other items: projections and estimates of earnings, revenues, margins, volumes, rates, cost-savings, expenses, taxes, liquidity, capital expenditures, dividends, share repurchases or other financial items, statements of management's plans, strategies and objectives for future operations, and management's expectations as to future performance and operations and the time by which objectives will be achieved, statements concerning proposed new services, and statements regarding future economic, industry or market conditions or performance. Forward-looking statements are typically identified by words or phrases such as “will,” “should,” “believe,” “expect,” “anticipate,” “project,” “estimate,” “preliminary” and similar expressions. Forward-looking statements speak only as of the date they are made, and the company undertakes no obligation to update or revise any forward-looking statement. If the company updates any forward-looking statement, no inference should be drawn that the company will make additional updates with respect to that statement or any other forward-looking statements.

Forward-looking statements are subject to a number of risks and uncertainties, and actual performance or results could differ materially from that anticipated by any forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by any forward- looking statements include, among others; (i) the company's success in implementing its financial and operational initiatives; (ii) changes in domestic or international economic, political or business conditions, including those affecting the transportation industry (such as the impact of industry competition, conditions, performance and consolidation); (iii) legislative or regulatory changes; (iv) the inherent business risks associated with safety and security; (v) the outcome of claims and litigation involving or affecting the company; (vi) natural events such as severe weather conditions or pandemic health crises; and (vii) the inherent uncertainty associated with projecting economic and business conditions.

Other important assumptions and factors that could cause actual results to differ materially from those in the forward-looking statements are specified in the company's SEC reports, accessible on the SEC's website at www.sec.gov and the company's website at www.csx.com.

Contact:
Matthew Korn, CFA, Head of Investor Relations, Service Measures & Pension
904-366-4515

Bryan Tucker, Corporate Communications
855-955-6397

FAQ

What is the recent agreement CSX reached with SMART-TD?

CSX reached a tentative agreement to provide SMART-TD Trainmen and Yardmasters with monthly wage adjustments of up to $600, starting May 2022.

How long will the advance payments to CSX employees last?

The advance payments will be provided from May 2022 through the end of the year or until a wage settlement is achieved.

When did the 2020 national bargaining process for CSX employees begin?

The 2020 national bargaining process began in November 2019.

What challenges are CSX employees currently facing?

CSX employees are facing high inflation and a prolonged wait for wage increases as bargaining negotiations continue.

Is the payment from CSX a one-time deal?

No, the payments are monthly advances until the wage settlement is finalized.