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Members of the International Brotherhood of Boilermakers, Blacksmiths, Iron Ship Builders, Forgers and Helpers; the International Association of Machinists and Aerospace Workers; and the Sheet Metal Workers’ International Association are the most recent to ratify new contracts with the nation’s largest freight railroads. The railroads now have ratified agreements with 10 unions and tentative agreements with two unions.

There remains only one union without a settlement, the Brotherhood of Maintenance of Way Employes (BMWE), which agreed with the railroads to extend the “cooling off” period until Feb. 8, 2012, eliminating the immediate threat of a national rail strike.

The railroads are making every effort to reach an agreement with BMWE as soon as possible. Read More.

Fast Facts

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Health Care Costs

Health care costs are rising dramatically; if nothing changes, by 2015 the railroads expect to pay as much as $3 billion for medical, dental, and vision benefits for employees and their families, tripling the railroad’s costs per employee since 1999. The railroads’ proposal will bring the health care plan closer to the mainstream, while continuing to provide excellent health care benefits at below-average cost to employees. Read more.

Economic Challenges

Railroads must continuously invest in rail infrastructure and service to meet customer demands. Unlike trucks, barges and airlines, freight railroads run almost exclusively over a network that they build and maintain. Rail labor and management must work together to manage labor costs to ensure that the railroads can continue to make critical investments vital to the industry’s future success. Read more.

Current Status

The railroads now have ratified agreements with almost 100,000 of the 132,000 covered employees. Additionally the carriers have ratified or tentative agreements with 12 of the 13 unions in this bargaining round. The railroads and the remaining unsettled union have agreed to extend the “cooling off” period until Feb. 8, 2012, eliminating the immediate threat of a national rail strike. Read More.