Norfolk Southern, engineers union reach pact

Norfolk Southern, engineers union reach pact

Norfolk Southern Railway and the Brotherhood of Locomotive Engineers on Friday reached a six-year agreement that continues to link engineers' compensation to NS's corporate performance.

The agreement provides engineers with an annual bonus opportunity based on the same financial performance criteria that determines management bonuses. The BLE has participated in NS's bonus program since 1996.

Other highlights of the agreement include wage increases in 2005 and 2007, enhancements to the BLE's 401(k) plan and incentive pay for weekend/holiday work.

"We want to take the lead in helping NS become more customer-focused and more successful," BLE General Chairman R.C. Wallace said. "We expect to show results that will trigger even higher bonus payments."

"This agreement continues our cooperative and mutually beneficial

partnership," said Jim Hixon, NS's senior vice president of administration. "By resolving the contract issues now, we will be able to focus our combined energies on improving operating efficiency and customer service on the railroad."