The SMART Railroad, Mechanical and Engineering Department (SMART-MD) has reached tentative agreements with CSX, Norfolk Southern and BNSF Railway that will be sent to the membership for a vote in the days ahead.
Section 6 notices for national negotiations are not allowed to be served until November 1, 2024; however, these tentative agreements were reached on an individual carrier basis, rather than under the national umbrella. The tentative agreements, if ratified, would resolve the next round of national negotiations for SMART-MD and each respective rail carrier.
Each five-year tentative agreement provides for annual general wage increases — effective July 1st of each calendar year — totaling 17.5% (over 18.75% when compounded), as well as paid vacation days for new-hire employees and the accelerated qualification and accrual of paid vacation for tenured employees. There are also improvements to health and welfare benefits, including the extension of health and welfare coverage for surviving dependents, male sterilization procedures (i.e., vasectomy), as well as substantial increases for vision frame allowances from $115 to $250 every two years. In addition, the orthodontia lifetime maximum benefit would increase from $1,000 to $2,500 per covered individual.
The tentative agreements provide for a new individual employee-only health insurance benefits coverage that is not mandatory and will only apply to employees that select such coverage. Employees that select this new benefit will have a reduced monthly cost-share payment, capped at 10% of the carrier’s monthly payment rate. Employees that do not select the new individual employee-only health insurance benefit will continue to have their traditional employer-provided health insurance benefits, as well as a monthly cost-share payment of 15% of the carrier’s monthly payment rate. Employees that entirely opt out of their employer-provided coverage will now receive $200 per month instead of $100.
“These tentative agreements provide real wage increases and substantial improvements to paid time off that the railroads have historically fought us on, as well as improvements to health and welfare benefits with an added benefit option for those that 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.”
“It is now up to the members to decide whether these agreements meet their standards,” added SMART General President Michael Coleman. “I know that all of SMART-MD, officers and staff, will be engaging with the members on each railroad property, answering questions and providing them with ratification material so they can make an informed decision.”