Union Pacific and the International Association of Sheet Metal, Air, Rail and Transportation Workers–Transportation Division on Sept. 22 announced an agreement they said “guarantees that SMART-TD members working in train and yardmaster service will have job protection for the length of their careers following the [UP-Norfolk Southern merger] transaction, subject to the usual requirements for continued employment.” UP and NS, which together would create a U.S. transcontinental railroad, notified the Surface Transportation Board late last month of their intent to file an application seeking merger approval on or before Jan. 29, 2026. It is expected that the application will be filed by Oct. 29.
UP “has committed that these [SMART-TD] employees will not face involuntary furloughs as a result of the merger,” in addition to “lifetime job protection” and “preferential hiring for affected terminal employees,” according to the railroad and the nation’s largest rail union. They reported that SMART-TD “is proud to announce its support” of the UP-NS merger. That support, they added, “will be reflected before the Surface Transportation Board in Docket No. 36873, where the union will stand behind the agreement as a model of protecting workers while advancing the industry.”
“This is a proud day [Sept. 22] for our members,” said Jeremy R. Ferguson, President of SMART-TD, which opposed the merger prior to what the railroad and union call a “groundbreaking” agreement. “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. We are protecting jobs, protecting families, and protecting the future of the U.S. supply chain. I want to thank [UP CEO] Jim Vena, [NS CEO] Mark George and their teams for thinking outside the box and putting their employees at ease in unprecedented times. This is a bold agreement, and I’m proud of the mutually beneficial work done here and what Union Pacific, Norfolk Southern, and SMART-TD were able to accomplish.”
“I want to thank SMART-TD for its leadership,” Jim Vena said. “When we announced our intent to create the first transcontinental railroad in America [sic*], 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. I am confident we will unlock new sources of growth for the country and our industry, taking more trucks off taxpayer-funded highways, serving new markets, and keeping more railroad jobs in America.”
“This merger will create opportunities for growth—not just for our business, but for our people,” Mark George said. “That’s why, from the outset, we made clear that every union employee at the combined company would have a job. Today’s [Sept. 22] commitment with SMART-TD takes that promise a step further and reflects our deep appreciation for and confidence in the people who keep our railroads moving every day.”
According to a Sept. 22 Associated Press report, “Tony Cardwell, president of the BMWED [Brotherhood of Maintenance of Way Employes Division–International Brotherhood of Teamsters], said his union rejected similar offer from Union Pacific a couple weeks ago because the railroad wouldn’t agree to protect workers if it decides to lease more of its tracks to short-line railroads to handle the final deliveries as it has already done in a couple locations. He said what good is a promise of a job if it means either taking a pay cut to go to work for a smaller railroad or moving across the country to keep a job with Union Pacific. Cardwell said that until workers in those situations are protected ‘We’re not going to support it [the proposed UP-NS merger]. In fact, we’ll vehemently deny it. And we feel like we have a close enough relationship right now with the White House that we can have an impact on this.’”
Following the proposed merger announcement on July 29, the Transport Workers Union of America (TWU) reported “strongly” opposing it, and urged “federal regulators, lawmakers, shippers, and unions to block the deal.” The TWU currently represents NS workers in Chicago, Cleveland, Pittsburgh, and Baltimore, along with Toledo, Ohio; Elkhart, Ind.; Harrisburg, Pa.; and other locations.
Noted TWU International President John Samuelsen at that time: “Union Pacific has a shameful safety record.” Added TWU Rail Division Director John Feltz: “Union Pacific cut railroad jobs even as other freight railroads ramped up hiring after the pandemic. They are not to be trusted by railroad workers nationwide and the TWU will fight any attempt to ram through a merger that Wall Street might like but is bad for railroad workers and the safety of everyone. This is going to be a long, drawn-out process where many groups will have a say.”
* Should be “U.S. transcontinental railroad.”
Further Reading:
- Mr. Vena Goes to Washington
- Kloster, Schultz Chosen for STB by POTUS 47
- Merger Dialogue: Shades of ‘Pride and Prejudice’
- Deal Vs. No Deal
- Mixed Views on Mergers
- NEARS: Consolidation, Weak Economic Backdrop Highlighted
- Transcon Merger Discussion with a Former Class I CEO
- UP+NS: An ‘Absolute Monster of a Railroad’
- UP + NS: What Comes Next?
- Union Pacific + Norfolk Southern: It’s Official
