Norfolk Southern (NSC) Inks Provisional Labor Deals With Unions

Norfolk Southern NSC, in partnership with BNSF Railway, inked provisional, five-year collective bargaining agreements with multiple labor unions.The tentative deals with the Brotherhood of Railway Carmen Division/TCU, the International Association of Sheet Metal, Air, Rail and Transportation Workers - Mechanical Department and the Transportation Communications Union/IAM have been inked four months prior to the commencement of the next collective bargaining round. NSC has also inked tentative agreements with multiple general committees of the transportation division of SMART.Now, the provisional deal will be voted upon by concerned workers (about 30% of NSC’s unionized workforce). This deal will materialize only if the voting outcome is favorable. The agreements, on materialization, would make them eligible for a 3.5% annual wage increase in the next five years on average. Other benefits include provision for more vacation and enhanced healthcare benefits.NSC‘s Price PerformanceMainly due to weak freight revenues led by demand erosion, shares of NSC have declined 5.4% in the past six months compared with its industry’s reduction of 6.4%.Six-Month Price PerformanceImage Source: Zacks Investment ResearchThe above tentative labor deals inked by NSC, currently carrying a Zacks Rank #3 (Hold), no doubt 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 going forward. Moreover, satisfied labor groups generally lead to greater operational efficiency. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Labor-Friendly U.S. RailroadsWith Canadian railroads, Canadian National Railway Company CNI and Canadian Pacific Kansas City CP grappling with labor issues that have required ministerial intervention, the companies’ U.S. counterparts have of late demonstrated a more labor-friendly approach.Apart from the above deals inked by NSC, CSX Corporation CSX has been in the news recently due to labor deals. Last week, CSX inked tentative agreements on new five-year collective bargaining contracts with various labor unions. On ratification, the concerned employees of CSX would be eligible for an annual 3.5% wage increase in five years, apart from improvements in paid vacation and health care. In the weekend, CSX inked similar tentative deals with additional unions.Infrastructure Stock Boom to Sweep AmericaA massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.The only question is “Will you get into the right stocks early when their growth potential is greatest?”Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.Download FREE: How To Profit From Trillions On Spending For Infrastructure >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CSX Corporation (CSX): Free Stock Analysis Report Canadian National Railway Company (CNI): Free Stock Analysis Report Norfolk Southern Corporation (NSC): Free Stock Analysis Report Canadian Pacific Kansas City Limited (CP): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks