CSX Stock In Focus After Signing Tentative Agreement With Union Representing 3,400 Workers

The railroad operator said the agreement includes general wage increases and health and welfare improvements, similar to its agreements with 13 other unions.

CSX Corp (CSX) will likely garner retail interest on Monday after the company reached a tentative agreement with the Brotherhood of Locomotive Engineers and Trainmen (BLET) on a new five-year contract covering about 3,400 locomotive engineers.

The railroad operator said the agreement includes general wage increases and health and welfare improvements, similar to its agreements with 13 other unions.

CSX said locomotive engineers comprise about 20% of its frontline workforce. If ratified, new agreements reached within the last nine months will cover nearly 75% of the company’s unionized workers.

According to the company's latest quarterly filing, 17,600 of CSX's employees are represented by unions.

“The tentative agreement, reached after months of negotiations, offers competitive pay, improved health care for locomotive engineers, and work rule changes that promote predictable assignments and additional quality-of-life enhancements,” CEO Joe Hinrichs said.

The company said that the only remaining major workgroup at CSX not covered by new agreements or a tentative agreement is the trainmen/conductors represented by SMART-TD. CSX said it is continuing talks with the union over a contract.

The company reported a 7% decline in revenue in the first quarter, while its total volume decreased by 1% compared to last year.

Alongside adverse weather, the Howard Street Tunnel and the rebuilding of the Blue Ridge subdivision impacted the company's earnings.

Retail sentiment on Stocktwits was in the ‘neutral’ (51/100) territory, while retail chatter was ‘low.’

CSX stock has fallen 11.7% year to date amid concerns over demand due to a trade war.

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