SMART-TD Union Backs Union Pacific-Norfolk Southern Merger After Job Security Guarantees
In a historic move, the International Association of Sheet Metal, Air, Rail and Transportation Workers (SMART-TD), the nation's largest railroad union, has announced its support for the proposed merger between Union Pacific (UP) and Norfolk Southern (NS). This endorsement comes after securing unprecedented job security guarantees for its members. The potential merger, valued at approximately $85 billion, aims to create the first transcontinental railroad in the United States.
Job Security Agreement: A Key Factor
SMART-TD's support hinged on a landmark agreement ensuring that its members working in train and yardmaster service will have job protection for the length of their careers following the merger. Union Pacific has committed that these employees will not face involuntary furloughs as a result of the consolidation. This guarantee directly addresses the union's primary concern about job security for its members.
"This is a proud day for our members," said SMART-TD President Jeremy R. Ferguson. "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."
Industry Leaders Respond
Both Union Pacific CEO Jim Vena and Norfolk Southern CEO Mark George have expressed their commitment to protecting union jobs throughout the merger process. Vena stated that all unionized employees with a job when the merger is approved will continue to have one. George emphasized that the merger will create growth opportunities for their people, reinforcing the commitment to job security.
"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," said Jim Vena.
Mixed Reactions from Other Unions and Shippers
While SMART-TD supports the merger, other rail unions, such as the Transport Workers Union (TWU) and the Brotherhood of Maintenance of Way Employes Division (BMWED), remain skeptical. Concerns persist regarding potential job cuts, safety issues, and the overall impact on competition and shipping rates. Some shippers, like the American Chemistry Council, also worry about service disruptions and increased costs, drawing parallels to problems that followed past rail mergers.
Potential Benefits and Regulatory Review
Supporters of the merger, including major shippers, anticipate benefits such as faster deliveries and increased efficiency due to the creation of a coast-to-coast rail network. The proposed merger now faces a regulatory review by the Surface Transportation Board (STB), which could take up to two years to complete. The STB will evaluate the potential impact on competition, service quality, and the overall public interest.
Key Points of the Agreement:
- Job protection for SMART-TD members in train and yardmaster service for the length of their careers.
- Commitment from Union Pacific to avoid involuntary furloughs for these employees.
- Support from SMART-TD for the merger before the Surface Transportation Board.
- Concerns from other unions and shippers remain regarding potential job losses and service disruptions.