CSX Finalizes Early Labor Agreements, Securing Wage Increases and Enhanced Benefits

Rhea-AI Summary

CSX Corp. (NASDAQ: CSX) has reached tentative agreements on new five-year collective bargaining agreements with three labor unions, covering approximately 25% of CSX's front-line union workforce. The agreements, subject to ratification, include average wage increases of 3.5% per year over five years and improvements in paid vacation and health care. These deals were finalized more than four months before the current contracts become amendable under the federal Railway Labor Act.

CSX CEO Joe Hinrichs praised the labor leaders for their proactive approach and emphasized the company's commitment to improving employee and customer experiences. The company has also reached out to other labor partners to secure similar agreements for all CSX union employees.

Positive

• Early finalization of labor agreements, potentially reducing future labor disputes
• Average wage increases of 3.5% per year for five years
• Improvements in paid vacation and health care benefits
• Agreements cover 25% of CSX's front-line union workforce

Negative

• Increased labor costs due to wage increases and enhanced benefits

News Market Reaction

-1.66%

1 alert

-1.66% News Effect

On the day this news was published, CSX declined 1.66%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

JACKSONVILLE, Fla., Aug. 21, 2024 (GLOBE NEWSWIRE) -- CSX Corp. (NASDAQ: CSX) announced today that the railroad has reached tentative agreements on new five-year collective bargaining agreements with the Transportation Communications Union (TCU), the Brotherhood of Railway Carmen (BRC), and General Committee of Adjustment GO-049 of the International Association of Sheet Metal, Air, Rail and Transportation Workers – Transportation Division (SMART-TD), representing train service employees on the Northern Mid-Atlantic District territory of the CSX system.

“I want to recognize the labor leaders who have stepped up to serve the best interests of their members and our employees in getting these historic deals done well in advance of their contracts even coming open for negotiation,” said Joe Hinrichs, president and chief executive officer. “CSX and our labor partners understand our employees don’t want to wait several years for their next pay raise. We thank the organizations for working with us to demonstrate that our ONE CSX culture and values aren’t just words, they are our collective path forward to an improved experience for both our employees and customers. We have also reached out to our other labor partners and look forward to promptly reaching agreements for all CSX union employees patterned on these same terms.”

The tentative agreements, which are subject to ratification by the unions’ membership at CSX, come more than four months before the current collective agreements become amendable under the federal Railway Labor Act. Terms include average wage increases of 3.5% per year over five years and improvements in paid vacation and health care. These tentative agreements cover approximately 25% of CSX’s front-line union workforce.

Additional details will be shared during the unions’ ratification processes.

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 240 short-line railroads and more than 70 ocean, river and lake ports with major population centers and farming towns alike. More information about CSX Corporation and its subsidiaries is available at www.csx.com. Like us on Facebook (http://facebook.com/OfficialCSX) and follow us on X, formerly known as Twitter (http://twitter.com/CSX).

Contact: 
Matthew Korn, CFA, Investor Relations
904-366-4515

Bryan Tucker, Corporate Communications 
855-955-6397

FAQ

What wage increases are included in CSX's new labor agreements?

CSX's new labor agreements include average wage increases of 3.5% per year over a five-year period.

Which unions has CSX reached tentative agreements with in August 2024?

CSX has reached tentative agreements with the Transportation Communications Union (TCU), the Brotherhood of Railway Carmen (BRC), and General Committee of Adjustment GO-049 of SMART-TD.

What percentage of CSX's workforce is covered by these new agreements?

The new tentative agreements cover approximately 25% of CSX's front-line union workforce.

When do CSX's current collective agreements become amendable?

CSX's current collective agreements become amendable under the federal Railway Labor Act more than four months after these new tentative agreements were reached.