Quick Background and Purpose

For more than 160 years, rail unions have helped shape the backbone of North American freight. In the mid-1800s, railroad work was grueling, dangerous, and largely unregulated. Ten-hour days, unpredictable pay, and frequent injuries were common. The Brotherhood of Locomotive Engineers, founded in 1863, became one of the first industrial unions in the nation, soon joined by groups representing conductors, carmen, and machinists.

By the early 1900s, rising accident rates and major strikes highlighted the need for a structured way to balance labor and management. In 1926, Congress passed the Railway Labor Act (RLA) to create a formal process for negotiations and to prevent service disruptions. The law was designed to keep freight moving while protecting the rights of railroad workers to bargain collectively.

For operations managers, fleet owners, contractors, and shippers, this system still defines how work is scheduled, staffed, and improved. Every agreement is built to protect stability first and flexibility second. Understanding how those agreements work is key to improving performance and planning future growth.

Operational Directive

If you manage people, projects, or contracts in a unionized environment, now is the time to review how those agreements shape your daily operations.
Ask your partners or yard managers to clarify the following:

• How seniority lists are structured and when they reset.

• How cross-craft work is managed when time-sensitive projects require flexibility.

• How new technologies such as inspection drones or predictive maintenance tools are introduced under existing agreements.

This is not about confrontation. It is about clarity. Clear expectations help managers and employees work with confidence. As the rail industry modernizes, it is important to make sure long-standing rules continue to support both safety and performance.

Current Landscape in Brief

The “Bare Minimum” Critique

A common criticism in the industry is that seniority systems can unintentionally reward time over talent. When advancement depends mainly on years of service, strong performers may feel overlooked, and newer employees can lose motivation. Managers also face challenges when trying to reward initiative or create merit-based incentives.

Detailed work rules can make flexibility difficult. A carman may not perform a signal inspection, even if trained, because it crosses into another union’s jurisdiction. This can create inefficiencies and reinforce a culture of compliance rather than innovation.

It is important to recognize that most workers are not avoiding effort. They are following the rules built to protect fairness and prevent disputes. The goal for modern leaders is not to dismantle that structure but to align it with today’s technology and performance expectations.

Strategic and Financial Planning

Review and Understand
Identify where labor agreements affect scheduling, job bidding, and contractor use. Note which provisions have not been updated in recent years and where local agreements already allow flexibility.

Explore Alternatives
Consider pilot projects that test new technologies or work processes under existing agreements. Collaboration can reduce friction and build mutual confidence.

Encourage Transparency
Share data on safety, dwell time, and productivity with labor partners. When both sides work from the same information, problem-solving becomes faster and more effective.

Why It Matters Now

The rail workforce is aging, technology is accelerating, and contractors are filling more specialized roles. Stability still matters, but adaptability is becoming just as important. Leaders who understand both the value and the limits of traditional labor structures will be best positioned to succeed in this next phase of rail modernization.

A conversation about evolution does not weaken the purpose of unions. It strengthens the system that keeps rail safe, reliable, and relevant.

Call to Action

• Review your current CBAs and side letters for modernization and pilot provisions.

• Ask union representatives how seniority, job bidding, and cross-craft rules apply to your operations.

• Identify one process or technology pilot that can improve efficiency within existing agreements.

• Schedule recurring meetings between management and labor to review safety and performance metrics together.

Thank you for engaging in the conversations that keep rail transparent, forward-looking, and grounded in progress. Collaboration, respect, and curiosity are what keep this industry moving.

Author: Jennifer Winter