Union Pacific, boilermakers OK post-merger job security pact

The International Brotherhood of Boilermakers (IBB) and Union Pacific Railroad reached an agreement that guarantees job security for union employees if a merger proposal between UP and Norfolk Southern Railway is allowed to proceed.

The IBB is the latest union to reach an agreement with UP that ensures employees who are employed at both UP and NS at the time of the merger will have job security for life, subject to the usual requirements for continued employment, UP officials said in a press release. 

“This agreement reinforces the promise I made when we announced the merger to protect the jobs of all unionized employees. I am confident this merger will deliver benefits to all stakeholders, shaping a stronger future for employees, customers and the American economy as we remove touchpoints and move goods faster across the supply chain.”

In late July, UP announced it would acquire NS and merge the two railroads' organizations under an $85 billion agreement. Shareholders of both companies approved the plan earlier this month. If the Surface Transportation Board approves the merger plan, the combined railroad would become the first nation's first transcontinental railroad. The railroads have not yet submitted their application to the STB. 

“The Boilermakers union looks forward to continued collaboration with Union Pacific and Norfolk Southern as this merger advances,” said IBB President Timothy Simmons. “We believe the commitments already in place — and the shared understanding reflected in our agreement — lay the groundwork for a stronger, more resilient and more opportunity-rich future for every union Boilermaker serving the railroad industry.”

The other unions that have reached a post-merger job security agreement with UP are the International Association of Sheet Metal, Air, Rail and Transportation workers–Transportation Division; the National Conference of Firemen and Oilers; and the Brotherhood of Railway Carmen.