Fourth union approves deal with railroads to get 24% raises


Freight cars wait to be hauled out of the Norfolk Southern Conway Terminal in Conway, Pa., Thursday, Sept. 15, 2022. (AP Photo/Gene J. Puskar)

OMAHA, Neb. (AP) — Another union has approved the deal it made with the major freight railroads last month that helped prevent a strike to secure 24% raises and $5,000 in bonuses for the workers it represents.

The American Train Dispatchers Association said Tuesday that 64% of its roughly 1,600 members approved the deal with Union Pacific, BNSF, Kansas City Southern, CSX, Norfolk Southern and other railroads. The union said dispatchers will receive an average payout of $17,500 when the five-year deal becomes final because it is retroactive to 2020.

Four smaller railroad unions have now approved their deals with the railroads, but the two biggest unions that represent engineers and conductors won't vote on their tentative agreements until mid-November. All 12 unions that represent some 115,000 workers have to approve these deals to prevent a strike, but much of the attention is focused on the engineers and conductors because they have some of the biggest concerns about schedules and working conditions.

Those two unions have said that the strict attendance policies some railroads have put in place after the industry cut nearly one-third of its jobs over the past six years make it difficult to take any time off and keep workers on call 24-7.

But even if one of the rail unions does reject their deal now, there won't automatically be a strike because both sides have agreed to allow some time to return to the table if a deal does fail to get approved.

Most of the deals the rail unions are voting on closely follow the recommendations that a special board of arbitrators that President Joe Biden appointed made this summer to help resolve the contract dispute that began nearly three years ago. The administration put pressure on both sides to reach agreements before the Sept. 16 strike deadline because of concerns about how a strike might cripple the economy.

In addition to what that board recommended, the unions that represent engineers and conductors — the Brotherhood of Locomotive Engineers and Trainmen and the Transportation Division of the International Association of Sheet Metal, Air, Rail and Transportation Workers unions — also negotiated to get three unpaid leave days for medical appointments and a promise that workers won’t be penalized if they are hospitalized. The railroads also agreed to negotiate further with those unions about improving the scheduling of regular days off for workers.

Should you invest $1,000 in Union Pacific right now?

Before you consider Union Pacific, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Union Pacific wasn't on the list.

While Union Pacific currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

7 AI Stocks to Invest In: An Introduction to AI Investing For Self-Directed Investors Cover

As the AI market heats up, investors who have a vision for artificial intelligence have the potential to see real returns. Learn about the industry as a whole as well as seven companies that are getting work done with the power of AI.

Get This Free Report

Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Kansas City Southern (KSU)
0.4843 of 5 stars
$293.59flat0.74%287.84N/A
Union Pacific (UNP)
4.3694 of 5 stars
$242.84-0.3%2.14%23.17Moderate Buy$255.00
Compare These Stocks  Add These Stocks to My Watchlist 


Featured Articles and Offers

Search Headlines: