SMART-TD endorses rail merger after securing jobs pact with Union Pacific

Union Pacific Railroad and the International Association of Sheet Metal, Air, Rail and Transportation Works-Transportation Division (SMART-TD) yesterday announced an agreement designed to secure job security for thousands of rail workers as UP and Norfolk Southern Railway pursue a merger.

The agreement ensures that SMART-TD members working in train and yardmaster service will have job protection for the length of their careers following the proposed merger, UP officials said in a joint press release with SMART-TD and NS.

Affected terminal members of SMART-TD also will benefit from preferential hiring and a commitment between UP and SMART-TD to collaborate on implementing agreements, SMART-TD officials said in the joint press release.

"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," said SMART-TD President Jeremy Ferguson.

SMART-TD also endorsed the proposed merger, because the protections for SMART-TD employees will result in reduced disruption for shippers and customer service, union officials said.

The union's endorsement follows recent opposition to the merger from organizations representing shippers, including the American Chemistry Council. 

"History has shown that mergers slash service and shift costs onto customers — and the UP-NS merger risks more of the same," said ACC President and CEO Chris Jahn in a prepared statement issued after the SMART-TD and UP agreement was announced. "President Trump has made real progress rebuilding American manufacturing. Let’s not let a monopoly undo it. We need a better deal — one that enhances competition between railroads, lowers costs, grows jobs and strengthens America.”