The SMART-TD union today said it would back Union Pacific’s acquisition of Norfolk Southern under an agreement that ensures job security for rank and file members who work in train and yardmaster service.
Union Pacific said SMART-TD employees would not face involuntary furloughs as a result of the merger and would have job protection for the length of their careers following approval of the transaction.
“This is a proud day for our members,” SMART-TD President Jeremy R. Ferguson said in a statement. “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 Jim Vena, 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.”
UP CEO Jim Vena and NS CEO Mark George had pledged, when they announced the $85 billion, end-to-end merger deal on July 29, that no union members would lose their jobs as a result of the merger.
“I want to thank SMART-TD for its leadership. 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 said in a statement today. “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.”
SMART-TD said the agreement is a model of labor-management collaboration.
“This is more than a contract — it’s a commitment,” Ferguson said. “It’s proof that when workers and management sit down in good faith, we can build an industry that serves everyone: employees, companies, and the American people who depend on the railroads every day.”
The UP-NS deal requires shareholder approval as well as a regulatory review by the Surface Transportation Board.
