BMWED Secures 18.1% Wage Increase With HESR Michigan

MICHIGAN, USA – On February 13, members of the Brotherhood of Maintenance of Way Employes Division (BMWED) ratified a new four-year collective bargaining agreement with Genesee & Wyoming Inc.’s Huron and Eastern Railway (HESR). The agreement, approved by a 14-4 vote, covers 18 employees and includes a compounded wage increase of 18.1% over the contract’s term. The HESR operates 331 miles of track in Michigan’s “thumb” region.

What Is the Full Scope of This Project?

This new four-year agreement provides a cumulative wage increase of 18.1% for maintenance of way employees on the 331-mile short-line railroad. In addition to the wage settlement, the contract includes unspecified improvements to vacation and paid time off policies. The agreement secures labor stability for a key regional freight line that interchanges with Class I carrier CN and two other regional railroads.

Key Project Data

How Does This Compare to Similar Projects?

The 18.1% compounded wage increase over four years for HESR employees is significant for a short-line operation, but it differs in structure from other recent major industrial labor agreements. For comparison, union members at Ingalls Shipbuilding ratified a contract in February 2026 securing an immediate base wage increase of 18 percent or higher, the largest single raise in that company’s history (Source: MarineLink, 2026). The HESR agreement’s gains are spread over the contract’s lifetime, whereas the shipbuilding deal provided a larger upfront increase.

Editor’s Analysis

This agreement reflects a broader trend of significant wage settlements in skilled labor sectors, which are essential for supporting large-scale infrastructure projects. As nations like the UK plan major rail investments and estimate future workforce needs, securing experienced maintenance personnel through competitive contracts becomes critical for operators like Genesee & Wyoming (Source: Railway Pro, 2025). Locking in a four-year deal provides G&W with predictable labor costs on a key regional line, mitigating workforce disruption risks amid a tight labor market for industrial trades.

FAQ

Q: How many employees are covered by this new G&W agreement?
A: The agreement covers 18 maintenance of way employees who are members of the BMWED’s Allied Federation division. The ratification vote was 14 in favor and 4 against.

Q: What is the effective annual wage increase?
A: The agreement specifies a compounded increase of 18.1% over four years, which averages to approximately 4.25% per year. The exact annual schedule of increases was not disclosed in the announcement.

Q: Does this agreement affect other Genesee & Wyoming railroads?
A: This contract is specific to the Huron and Eastern Railway (HESR) in Michigan. Labor agreements are negotiated on a railroad-by-railroad basis, and this settlement does not automatically apply to other G&W properties.