CSX Corporation (CSX) has inked new five-year tentative collective bargaining agreements with two more labor unions.
The tentative deals with the International Brotherhood of Boilermakers, Iron Ship Builders, Blacksmiths, Forgers & Helpers and the Transportation Communications Union have been inked four months prior to the amendment of the current collective agreements under the federal Railway Labor Act.
The deals are effective based on the pending ratification by the unions’ membership at CSX.
So far, CSX has inked proactive deals with 11 labor unions. This includes 15 different work groups, amending 20 collective agreements covering more than 50% of CSX’s unionized workforce. All the deals are aimed at offering equivalent packages of improved wages, health care, and paid time off benefits.
Joe Hinrichs, president and chief executive officer at CSX, stated, “The latest tentative agreements build upon the momentum that we have created alongside our union partners and allows us to solidify the foundation at CSX where every employee feels valued and empowered. Our employees are the backbone of our company, and their dedication and hard work are critical to our ability to deliver on our promises to our customers and the communities we serve.”
CSX Stock’s Price Performance
Due to supply-chain disturbances and network-related issues, shares of CSX have plunged 10.8% in the past six months compared with its industry’s decline of 4.1%.
Image Source: Zacks Investment Research
The above tentative labor deals inked by CSX reflect a positive development as these highlight the railroad operator’s labor-friendly approach. Successful materialization of the deals is likely to boost the stock price in the future. Moreover, satisfied labor groups generally lead to greater operational efficiency.
CSX Zacks Rank
CSX currently carries a Zacks Rank #3 (Hold). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Labor-Friendly U.S. Railroads
Canadian National Railway Company (CNI) and Canadian Pacific Kansas City (CP) are also grappling with labor issues that have required ministerial intervention. These companies’ U.S. counterparts have, of late, demonstrated a more labor-friendly approach.
Apart from the above deals inked by CSX, Norfolk Southern NSC has been in the news recently due to labor deals. Last week, NSC inked tentative agreements on new five-year collective bargaining contracts with various labor unions. On ratification, the concerned employees of NSC would be eligible for an annual 3.5% wage increase in five years, apart from improvements in paid vacation and health care.
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