KEY FACTS

• The 2025 national bargaining round concluded on July 6, 2026, with all 12 unions and approximately 30 railroads reaching and ratifying agreements covering more than 100,000 employees through December 31, 2029.

Freight railroads and the unions that represent their employees negotiate changes to wages, benefits and work rules through a process called collective bargaining. Because of freight rail’s critical role in America’s supply chain, the industry’s collective bargaining process differs from most other private-sector labor negotiations.

For almost a century, the Railway Labor Act (RLA) has governed collective bargaining between freight railroads and labor organizations. To facilitate negotiations without interruptions to commerce, freight rail labor agreements remain effective until new terms are agreed upon. While the RLA process includes mechanisms for third-party mediation in case of a stalemate, most national freight rail negotiations have resulted in voluntary agreements.

Freight railroads’ long history of progress at the bargaining table reinforces what many in the industry have always known: railroading is important, skilled work that powers the economy while providing careers with high compensation and world-class benefits.

The 2025 national bargaining round concluded on July 6, 2026, with all 12 unions and approximately 30 railroads reaching and ratifying agreements covering more than 100,000 employees through December 31, 2029.

• Wage increases of 18.8% over five years. The 18.8% wage increase in the most recent pattern bargaining agreements builds on the historic 24% wage increase from the 2022 bargaining round. Taken together, these wage increases represent a nearly 50% (compounded) wage increase for covered employees between 2020 and 2029.
• Enhancements to world-class health and welfare benefits with no increase to the employee contribution rate. Employees’ 2026 health care premiums are about $308/month, well below the national average of more than $500/month for employer-provided family coverage.
• More paid time off. The pattern agreements provide for more paid vacation time for employees earlier in their careers.

THE BOTTOM LINE

Freight rail collective bargaining delivers strong wages, quality benefits, and stable working conditions through a structured, law-governed process. By enabling railroads and unions to reach voluntary agreements, it supports a skilled workforce, reliable service, and long-term industry stability that benefits employees, customers, and the broader economy.