CSX Corp. (NASDAQ: CSX) today announced it has reached a tentative agreement with the Sheet Metal, Air, Rail and Transportation Workers, Transportation Division (SMART-TD) to provide SMART-TD Trainmen and Yardmasters with monthly advance payments on future wage adjustments anticipated in settlement of the 2020 round of national bargaining between rail labor and the Class I railroads. CSX also notified its other labor organization representatives that it intends to reach agreements to provide identical payments to all unionized employees.
James M. Foote, president and chief executive officer of CSX, said: "Our union employees have waited nearly two years for a pay raise and are now dealing with the challenge of high inflation. This tentative agreement with SMART-TD is good for our employees, and we are committed to working with all of our labor unions to get this done for all union employees, who should not be left behind for months and months as we await the complex issues in national bargaining to be settled."
The tentative agreement with SMART-TD provides that the monthly payments of up to $600 would be made from May 2022 through the end of the year, or until negotiated wage settlement is reached, whichever is earlier. The advance payments would be deducted from any retroactive or future pay increases that may be agreed upon at national bargaining.
The 2020 round of bargaining began in November 2019, and the National Rail Carrier Conference and the labor coalitions are currently in mediation before the National Mediation Board. It is unclear how long it may take for negotiations to conclude. CSX has advised its labor unions and seeks their agreement to implement these advances, as required under the Railway Labor Act.
Jamie Boychuk, executive vice president of Operations, CSX, said: "We know that collective bargaining in the rail industry tends to take years. We also know that our union-represented operations employees are suffering from the broader economic challenges. These are unprecedented times, and our operations employees have delivered for our customers, communities and the nation through the pandemic, on-going supply chain disruptions, and higher housing, food and fuel prices. It's time we recognize their efforts and the difficult circumstances they and their families are facing by providing some relief through these fair and rightly earned wage adjustments."
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 230 short-line railroads and more than 70 ocean, river and lake ports with major population centers and farming towns alike. More information about CSX Corp. and its subsidiaries is available at www.csx.com. Like us on Facebook (http://facebook.com/OfficialCSX) and follow us on Twitter (http://twitter.com/CSX).
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Matthew Korn, CFA, Head of Investor Relations, Service Measures & Pension
Bryan Tucker, Corporate Communications