The deal ensures that SMART-TD workers in train and yardmaster service will not face involuntary furloughs as a result of the merger, a pledge Union Pacific said will extend through employees’ careers. The agreement also establishes preferential hiring at impacted terminals and a framework for implementing protections collaboratively.
“This is a proud day for our members,” said Jeremy R. Ferguson, president of SMART-TD. “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 putting employees at ease in unprecedented times.”
Union Pacific CEO Jim Vena reiterated his commitment:
“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 added that the protections go beyond initial commitments:
“Today’s commitment with SMART-TD reflects our deep appreciation for the people who keep our railroads moving every day.”
While labor leaders are celebrating the job protections, shipper groups remain wary. The Rail Customer Coalition has urged the Surface Transportation Board (STB) to closely scrutinize the deal, warning that reduced competition could lead to higher costs and service disruptions.
The STB is currently reviewing the merger under Docket No. 36873. SMART-TD’s support will weigh heavily, given that labor groups often oppose mergers over job concerns.
Beyond the merger, Union Pacific is moving to strengthen its U.S. footprint. The railroad recently announced the addition of 15 new “focus sites” across nine states to accelerate rail-served industrial development and improve connectivity with short-line railroads. These sites are designed to attract new shippers, reduce truck miles, and improve supply chain resilience—an effort aligned with broader national goals of lowering highway congestion and emissions.
Union Pacific’s second-quarter earnings beat Wall Street expectations, buoyed by strong coal shipments and pricing gains. However, its operating ratio—an efficiency metric—rose year-over-year, signaling higher costs.
At the same time, the company implemented a 5% tariff increase per car under tariff UP 2028, Item 1500, effective April 1, 2025. The increase has added cost pressures for agricultural shippers and could play into broader debates over rail competition and pricing fairness.
The proposed merger has also drawn political attention. Former President Donald Trump recently voiced support, saying it “sounds good,” adding another layer of visibility to what is already one of the most consequential rail consolidation cases in decades.
For now, the combined momentum of labor support and corporate expansion plans gives Union Pacific and Norfolk Southern a stronger case before regulators. Yet, with shippers pressing antitrust concerns and tariff hikes testing relationships, the outcome of the STB’s decision remains uncertain.
If approved, the merger would create the first U.S. transcontinental railroad, with potential benefits ranging from reduced highway freight traffic to expanded market access. The SMART-TD agreement could serve as a model for how labor and management can align on large-scale transactions without sacrificing worker security.
“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.”
