The nation’s largest railroad union and one of the country’s largest rail carriers have struck what leaders are calling an unprecedented agreement to safeguard jobs as Union Pacific and Norfolk Southern pursue a proposed merger.
The International Association of Sheet Metal, Air, Rail and Transportation Workers – Transportation Division (SMART-TD) and Union Pacific Railroad announced the deal Monday, saying it guarantees job protection for thousands of train and yardmaster service employees for the remainder of their careers, subject to standard employment requirements.
Union Pacific committed that no SMART-TD members will face involuntary furloughs as a result of the merger — a first in the history of U.S. railroading.
SMART-TD President Jeremy R. Ferguson said the protections bring long-sought security to rail families. “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,” Ferguson said. “Today, we can say with confidence that the biggest railroad and the biggest rail union in America are breaking new ground.”
The union said its support for the merger will be presented before the Surface Transportation Board as part of Docket No. 36873.
Union Pacific CEO Jim Vena praised the agreement, noting it fulfills a pledge made when the merger was announced. “Those who have a job when the merger is approved will continue to have one,” Vena said. He added the combined railroad will reduce truck traffic on highways, serve new markets, and preserve U.S. railroad jobs.
Norfolk Southern CEO Mark George called the deal a reflection of the company’s confidence in its workforce. “This merger will create opportunities for growth – not just for our business, but for our people,” George said.
The agreement also includes preferential hiring for affected terminal employees and a commitment to collaborate on future implementation measures.
Ferguson described it as “more than a contract—it’s a commitment,” saying the deal shows how unions and management can balance economic progress with protecting livelihoods.