Union Pacific and SMART-TD Forge Historic Agreement to Protect Jobs Amid Merger

The newly minted agreement guarantees that SMART-TD members working in train and yardmaster service will enjoy lifetime job protection following the proposed merger, subject to standard employment requirements. Notably, Union Pacific has committed to ensuring that these employees will not face involuntary furloughs as a direct result of the merger—a move hailed as unprecedented in the history of the industry.

This commitment is poised to deliver significant benefits not only to the workforce but also to the broader supply chain. By reducing potential disruptions, the agreement aims to enhance overall customer service, a critical consideration in the current economic climate. SMART-TD expressed its strong support for the merger, which will be a focal point at the Surface Transportation Board under Docket No. 36873.

SMART-TD entered negotiations with a clear priority: securing the job stability of its members. The agreement features several key provisions, including preferential hiring for affected terminal employees and a joint commitment from both parties to work collaboratively on its implementation. This forward-thinking approach ensures that railroaders and their families will have long-term stability and peace of mind.

SMART-TD President Jeremy R. Ferguson expressed pride in the agreement, stating, “For generations, railroaders have worried about what mergers might mean for their jobs and whether or not they would be given the opportunity to reach retirement on the rail. Today, we can say with confidence that the biggest railroad and the biggest rail union in America are breaking new ground.”

Union Pacific’s Chief Executive Officer, Jim Vena, emphasized the importance of job protection during the merger process: “When we announced our intent to create the first transcontinental railroad in America, I made a promise to protect the jobs of all unionized employees. Those who have a job when the merger is approved will continue to have one.” Vena expressed confidence that the merger would unlock new growth opportunities for the industry while taking more trucks off highways.

Norfolk Southern CEO Mark George also lauded the agreement, stating, “This merger will create opportunities for growth—not just for our business, but for our people.” George reiterated their commitment to ensuring that every union employee at the combined company would retain their job, reflecting a deep appreciation for the workforce that sustains the railroads.

The agreement is being recognized as a prime example of effective collaboration between labor and management. Ferguson noted that it transcends a typical contract, representing a commitment to building an industry that serves employees, companies, and the American public who rely on railroads.

“This is more than a contract—it’s a commitment,” Ferguson added. “It’s proof that when workers and management sit down in good faith, we can build an industry that serves everyone.”

As Union Pacific and Norfolk Southern move forward with their merger plans, the establishment of this groundbreaking agreement underscores a pivotal moment in the rail industry. By prioritizing job security and collaboration, both companies are setting a precedent that aims to safeguard the future of their employees and the broader supply chain. This strategic partnership not only enhances operational stability but also reflects a commitment to the American economy and its workforce.