CSX reaches union deals ahead of deadline (Courtesy of the Jacksonville Daily Record) — Before becoming CEO of Jacksonville-based CSX Corp., Joe Hinrichs had a reputation of working well with unions in his previous career in the auto industry.
Now he may be gaining the same reputation in the railroad industry after CSX announced a string of labor agreements between Aug. 21 and Aug. 23.
CSX said it reached five-year agreements with 12 unions, covering more than half of its union labor force, before their current agreements end Dec. 31.
According to the company’s annual report, the contracts do not expire when the term runs out but continue until amended, and notices to amend the agreements can be served as soon as Nov. 1.
“We are incredibly pleased to have reached these tentative agreements ahead of the re-negotiation process, reflecting our strong commitment to collaboration with our union partners,” Hinrichs said in a news release.
“CSX and our labor partners understand our employees don’t want to wait several years for their next pay raise,” Hinrichs said in another release.
Several unions credited Hinrichs’ efforts to get deals done in their own news releases.
“We were pleased to find that CSX CEO Joe Hinrichs and his team at CSX were willing to step up to the plate and not play games,” said Rick Lee, general chairperson of the International Association of Sheet Metal, Air, Rail and Transportation Workers – Transportation Division.
“Class I rail carriers traditionally stick together, play games with us and basically try to wait us out to uncertainty before offering any beneficial agreement changes that we seek, if they offer anything at all,” he said.
Hinrichs joined CSX in September 2022, when the company and other major railroads were trying to reach agreements on labor contracts that had concluded at the end of 2019.
Before joining CSX, Hinrichs spent nearly 20 years at Ford Motor Co., retiring in 2020 as president of automotive operations.
He had a reputation at Ford of working successfully with the United Auto Workers union and said when he was hired he hoped to improve relations with CSX employees and unions.
CSX and the other major railroads reached contract agreements late in 2022 but the company had to negotiate individual contracts with unions in 2023 over additional issues, including paid sick leave.
The major contract agreement covered the years 2020 through 2024, so CSX had to return to the bargaining table this year and negotiate new deals.
CSX did not announce terms of all the new agreements, which still need to be ratified by union members.
The Transportation Communications Union said its five-year agreement includes a 17% general wage increase and improved vacation and health and welfare benefits.
“This is a truly historic moment in negotiations with the freight railroads and I am proud that TCU is leading the way,” TCU National President Artie Maratea said in a news release.
“I cannot recall a time in my entire career when there has been a new contract in place before the expiration of the current contract with any of the freight carriers,” he said.
Maratea said the union was trying to negotiate a broader contract with the National Carriers Conference Committee but it hasn’t been able to reach an agreement.
“CSX did the right thing and stayed at the bargaining table and reached a fair agreement for our members. CSX CEO Joe Hinrichs promised he would do everything possible to reach a fair and timely agreement. He kept his word and I appreciate that,” he said.
“It’s refreshing to see that we are finally advancing in transparency and fruitful negotiations with CSX to address the issues at hand,” Lee said.
Hinrichs praised union leaders for working to serve the interests of their members.
“We are continually listening to our valued front-line employees about what is needed to make positive and impactful improvements to our work environment. Their well-being is critical to our company’s success, and we are proud to get these deals done ahead of schedule,” he said.
CSX said in its annual report that about 17,700 of its 23,000 employees as of December 2023 were members of rail unions.