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CSX Signs Deal Related to Paid Sick Leave With IBEW Union

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CSX Corporation (CSX - Free Report) announced that it has entered into an agreement with the International Brotherhood of Electrical Workers (IBEW). This deal, being the seventh one between CSX and rail unions in recent weeks, aims at offering paid sick leave to employees. The deal covers almost 7,700 or 46% of CSX’s union-represented workforce.

Apart from IBEW, other unions that have negotiated paid sick leave for their members are the Brotherhood of Maintenance of Way, which represents track workers, the Brotherhood of Railway Carmen, representing mechanical employees, the International Association of Machinists and Aerospace Workers, representing railroad machinists, and the National Conference of Firemen and Oilers, an association of CSX’s utility workers.

Such deals reflect CSX’s employee-friendly attitude through which it tries to maintain cordial relations with its employees and the unions representing them, thereby providing a healthy work atmosphere at CSX.

Joe Hinrichs, president and chief executive officer of CSX, stated, “We are pleased by the progress we are making to improve the dialogue and strengthen relationships with rail labor.” He further added, “This newest agreement, with the IBEW, is a continuation of the spirit of cooperation that we are committed to pursuing as we work together to improve the employee work experience, enhance the safety of our operations, and grow the business.”

Over the past six months, shares of CSX have gained 3.1% compared with the 1.8% rise of the industry it belongs to.

Zacks Investment Research
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Notably, companies in the Zacks Transportation – Rail industry are entering into collective deals with the unions. Canadian National Railway Company (CNI - Free Report) announced that it has entered into new tentative collective deals with Unifor. These collective agreements represent nearly 3,000 Canadian National employees engaged in multiple departments such as mechanical, intermodal, facility management and clerical positions in Canada. Further details will be unveiled once the deal becomes official.

Canadian Pacific Railway Limited (CP - Free Report) also recently announced that it had inked a tentative collective agreement with the Teamsters Canada Rail Conference Maintenance of Way Employees Division (TCRC-MWED). TCRC-MWED covers almost 2,600 engineering services employees in Canada.

Canadian Pacific has a track record of successfully dealing with multiple unions representing craft employees. In the last few months, Canadian Pacific has inked 16 agreements in 2023 in Canada and the United States.

Zacks Rank & Stock to Consider

Currently, CSX carries a Zacks Rank #3 (Hold).

A better-ranked stock from the broader Zacks Transportation sector is American Airlines (AAL - Free Report) , which currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

AAL has an expected earnings growth rate of more than 100% for the current year. AAL delivered a trailing four-quarter earnings surprise of 7.79%, on average.

The Zacks Consensus Estimate for AAL’s current-year earnings has improved 31.1% over the past 90 days. Shares of AAL have gained 16.5% over the past six months.

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