SMART-TD and Union Pacific Announce Landmark Job Protection Agreement Amid Merger Plans
The International Association of Sheet Metal, Air, Rail and Transportation Workers – Transportation Division (SMART-TD), the largest railroad union in the United States, and Union Pacific Railroad, the nation’s biggest rail carrier, have unveiled a historic agreement that secures unprecedented job protection for thousands of railroad employees. This groundbreaking announcement comes as Union Pacific and Norfolk Southern advance plans for a proposed merger that would reshape the U.S. freight rail landscape.
The deal represents one of the strongest commitments ever made in the history of American railroading to safeguard workers while also ensuring stability for shippers and the broader supply chain. For generations, railroaders have lived with uncertainty when mergers were announced, often fearing layoffs or involuntary furloughs. This new agreement, however, rewrites that narrative. It guarantees that SMART-TD members working in train and yardmaster service will enjoy career-long job security, provided they continue to meet standard employment requirements.
Union Pacific has explicitly pledged that these employees will not be subject to involuntary furloughs resulting from the merger — a first-of-its-kind commitment in an industry long associated with cyclical employment risks. By offering these assurances, Union Pacific and SMART-TD are signaling to workers, customers, and regulators that the merger is not only about efficiency and growth, but also about protecting livelihoods and preserving the workforce that powers the rail system.
Why This Agreement Matters
Mergers in the rail industry have historically been a double-edged sword. On one hand, they can bring operational efficiencies, network expansion, and improved service. On the other hand, they often result in workforce reductions, with employees uncertain about whether their positions will survive. For the men and women who operate America’s freight trains — many of whom dedicate decades of their lives to the railroads — such uncertainty has been a heavy burden.
SMART-TD entered negotiations with Union Pacific determined to eliminate this fear. Their singular focus was to ensure that workers would not be sacrificed in the name of corporate consolidation. The outcome reflects that determination: lifetime job protection, preferential hiring at terminals affected by operational changes, and a framework for collaborative implementation of agreements.
This arrangement does more than provide peace of mind to employees. It strengthens the entire freight rail supply chain. By minimizing disruption to staffing levels, shippers can count on consistent service, and communities across the country can rely on a more stable flow of goods.
Voices of Leadership
SMART-TD President Jeremy R. Ferguson hailed the deal as a turning point for railroad workers.
“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. We are protecting jobs, protecting families, and protecting the future of the U.S. supply chain.”
Ferguson extended his thanks to Union Pacific CEO Jim Vena, Norfolk Southern CEO Mark George, and their teams for approaching negotiations with creativity and a willingness to put employees first.
Union Pacific CEO Jim Vena echoed this sentiment, emphasizing that the merger is not about reducing jobs but creating opportunities for growth.
“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,” Vena said. “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.”
Norfolk Southern CEO Mark George reinforced the message, highlighting the company’s commitment to both its workforce and the future of rail.
“This merger will create opportunities for growth — not just for our business, but for our people,” 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 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.”
A First in American Railroading
The U.S. freight rail industry has seen its share of mergers over the decades, particularly during the deregulation wave of the 1980s and 1990s. These consolidations created the massive Class I railroads that dominate the landscape today. However, rarely — if ever — have workers been offered job protection at this scale.
Typically, mergers have led to redundancy in staffing, overlapping routes, and operational streamlining that resulted in furloughs. The commitment by Union Pacific and Norfolk Southern to guarantee lifetime job protection marks a decisive shift from that tradition. It sets a precedent that could influence future negotiations between railroads and labor unions.
For regulators, particularly the Surface Transportation Board (STB), this agreement will likely weigh heavily in deliberations over the merger. Labor concerns have always been central to regulatory reviews of rail consolidations. SMART-TD’s endorsement — backed by ironclad protections for workers — strengthens the case that this merger can proceed without the social costs typically associated with such deals.
Protecting Workers, Protecting the Economy
Railroads remain the backbone of U.S. freight movement, carrying everything from agricultural products and energy supplies to manufactured goods and consumer products. The efficiency and reliability of this system have direct implications for the nation’s economy. When rail workers face uncertainty or disruption, the ripple effects can extend across supply chains and into the daily lives of millions of Americans.
By guaranteeing stability for its workforce, Union Pacific and SMART-TD are ensuring continuity of service for shippers and communities alike. This is especially important in a period of heightened focus on supply chain resilience, where disruptions can have outsized impacts on inflation, trade, and economic growth.
A Model for Future Labor–Management Relations
Beyond the merger itself, this agreement demonstrates that labor and management can find common ground even in the midst of sweeping change. Rather than adversaries locked in zero-sum negotiations, SMART-TD and Union Pacific approached the talks as partners with a shared interest: building a stronger, more sustainable rail industry.
Ferguson summed it up best:
The collaboration offers a blueprint for other sectors grappling with technological change, mergers, or restructuring. It shows that worker protections and corporate growth are not mutually exclusive but can, in fact, reinforce one another.
The merger between Union Pacific and Norfolk Southern, if approved, would create the first true transcontinental railroad in the United States. Advocates argue that such a network could drive new efficiencies, reduce highway congestion by shifting freight from trucks to trains, and expand service to underserved markets.
With the new agreement in place, SMART-TD’s support adds momentum to the proposal. The union will formally back the merger in proceedings before the Surface Transportation Board under Docket No. 36873, citing the job protections as a model for balancing industry progress with worker security.
The coming months will bring intense scrutiny as regulators, customers, and communities weigh the merger’s potential impacts. But for thousands of railroad workers, one thing is already clear: their jobs and futures are secure, thanks to a groundbreaking partnership between labor and management.
The agreement between SMART-TD, Union Pacific, and Norfolk Southern is nothing short of historic. It redefines what is possible when unions and corporations work together with mutual respect and shared purpose. For the first time in U.S. railroad history, employees can look to the future without fear of being sidelined by consolidation.
By protecting jobs, supporting families, and bolstering the supply chain, this deal sets a new benchmark for the rail industry and beyond. It is a rare example of a merger that promises not only economic growth but also fairness and stability for the very people who make that growth possible.