CSX’s CSX successful ratification of a five-year labor agreement with the Brotherhood of Locomotive Engineers and Trainmen (“BLET”) marks a pivotal achievement in its labor relations strategy. Covering approximately 3,400 locomotive engineers, this agreement represents the first of its kind between a Class I freight railroad and BLET, signaling a significant breakthrough in collaborative labor negotiations.
The move underscores CSX’s commitment to strengthening relationships with its workforce and enhancing operational stability across its network.
This agreement aligns with the wage increases, and health and welfare improvements previously negotiated with 13 other unions, reflecting CSX’s consistent and balanced approach to labor contracts. With nearly 75% of its unionized employees now covered under new agreements in the past 10 months, CSX is clearly prioritizing labor continuity and employee well-being.
This widespread ratification is expected to improve workforce morale, enhance service reliability, and support the company’s long-term growth and efficiency goals.
However, negotiations remain ongoing with SMART-TD, which represents trainmen and conductors — the only major workgroup not yet covered under a new or tentative agreement. CSX’s current efforts to consolidate territories and unify the workforce under a single-system agreement demonstrate its intent to simplify operations and build a more cohesive labor structure. If successful, this final phase of negotiations would solidify CSX’s labor foundation, positioning the company to move forward with enhanced workforce alignment and a stronger operational outlook.
CSX’s Zacks Rank
CSX currently carries a Zacks Rank #4 (Sell).
Stocks to Consider
Investors interested in the Transportation sector may consider Copa Holdings CPA and Ryanair RYAAY.
CPA currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
CPA has an expected earnings growth rate of 14.3% for the current year. The company has an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 5.5%. Shares of CPA have risen 20.7% year to date.
RYAAY currently carries a Zacks Rank of #2 (Buy).
RYAAY has an expected earnings growth rate of 30.5% for the current year. The company has a mixed earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, delivering an average beat of 46.6%. Shares of RYAAY have rallied 31.7% year to date.
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Today, See These 5 Potential Home Runs >>Ryanair Holdings PLC (RYAAY) : Free Stock Analysis Report
CSX Corporation (CSX) : Free Stock Analysis Report
Copa Holdings, S.A. (CPA) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
