BNSF Reaches Tentative Collective Agreements With Four Labor Unions

Agreements come months before next collective bargaining round, giving covered employees early assurances on significant future improvements to pay, health care, and vacation

BNSF Railway, one of North America’s leading transportation companies, in partnership with Norfolk Southern Corporation (NYSE; NSC) today announced it has reached tentative, five-year collective bargaining agreements with the Brotherhood of Railway Carmen Division/TCU (BRC), International Association of Sheet Metal, Air, Rail and Transportation Workers – Mechanical Department (SMART-MD) and the Transportation Communications Union/IAM (TCU). In similar fashion, BNSF has also reached a tentative agreement with the American Train Dispatchers Association (ATDA).

The agreements, which are subject to ratification, come four months before the opening of the next collective bargaining round, giving covered employees unprecedented certainty about upcoming enhancements to their pay, health care, and vacation.

“We recognize that we are successful in meeting our customers’ expectations because of the men and women of BNSF,” said BNSF President & CEO Katie Farmer. “I appreciate and want to thank the labor leaders who have collaborated with us to secure these tentative agreements in advance of the upcoming bargaining round. These agreements prioritize the well-being of our employees by not making them wait years for a pay raise, while, at the same time, ensuring our ability to continue providing industry-leading service for our customers.”

The tentative agreements provide a 3.5-percent average wage increase per year over the next five years. They also offer railroaders more vacation earlier in their career and make meaningful enhancements to an already robust suite of health care benefits.

“The tentative agreements provide real wage increases, substantial improvements to paid time off that the railroads have historically fought us on, improvements to health and welfare benefits with an added benefit option for those that who want it,” said SMART Directing General Chairperson, John McCloskey. “These tentative agreements, if ratified, take away the uncertainty of when the next round of national negotiations will be completed, and if and when annual pay increases will be implemented.”

“This is a great agreement for TCU members working at BNSF,” said TCU National President Artie Maratea. “This round of negotiations is proof that, by working together, we can do great things for employees and the railroad industry. I commend BNSF CEO Katie Farmer and her team of negotiators. They stayed at the bargaining table and ensured their employees get the benefit of this historic agreement.”

“BRC is proud to be amongst the first unions to reach a tentative agreement with BNSF,” said General President of BRC Don Grissom. “This round of negotiations was not without challenges, but it demonstrates we can do great things for the employees by working together. I appreciate the cooperation and support of CEO Katie Farmer in bringing this agreement together. We look forward to continuing to work together.”

“This agreement proves that it doesn’t need to take years to reach a fair wage and healthcare agreement,” ATDA President Ed Dowell said. “Over the next few months, ATDA and BNSF will continue to bargain for additional quality of life and work rule changes. I’d like to thank Vice President Kevin Porter and General Chairman Kevin Ketcham for all they did to make this happen. Given that this is the second significant agreement we’ve reached with BNSF this year, I’d also like to thank Vice President of Labor Relations Sam Macedonio and his team for their continued cooperation.”

If ratified, the agreements would cover approximately 15 percent of BNSF’s union workforce.

About BNSF Railway

BNSF Railway is one of North America’s leading freight transportation companies. BNSF operates approximately 32,500 route miles of track in 28 states and also operates in three Canadian provinces. BNSF is one of the top transporters of consumer goods, grain and agricultural products, low-sulfur coal, and industrial goods such as petroleum, chemicals, housing materials, food and beverages. BNSF’s shipments help feed, clothe, supply, and power American homes and businesses every day. BNSF and its employees have developed one of the most technologically advanced, and efficient railroads in the industry. We work continuously to improve the value of the safety, service, energy, and environmental benefits we provide to our customers and the communities we serve. You can learn more about BNSF at www.BNSF.com.

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