Union Jobs for Life: An Unprecedented Pledge Enabled by Growth

That understanding has shaped my approach to leadership, and it’s why I’ve spent so much time listening to employees as we plan the Union Pacific-Norfolk Southern combination. It’s also why I’m confident this merger is good for railroaders.

For generations, mergers have made people nervous. In today’s economy, that anxiety is understandable. We’re watching Fortune 50 companies that are household names announce layoffs by the thousands. Against that backdrop, our commitment is simple and unprecedented in railroading: every union employee who has a job at the time of the merger will continue to have one. Full stop.

We didn’t just say that. We put it in writing.

Union Pacific has formalized jobs-for-life agreements with several unions, including SMART-TD, the nation’s largest rail labor organization, as well as National Conference of Firemen and Oilers, Brotherhood of Railway Carmen, International Brotherhood of Boilermakers and United Supervisors Council of America. These agreements spell out the commitment for specific crafts, but the promise extends to all union employees at Union Pacific and Norfolk Southern. Any job efficiencies tied to the merger will be handled through attrition, not layoffs.

It’s also important to understand how different this is from what usually happens in Class I rail mergers. Traditional labor protection offers up to six years of income protection – and only if an employee can prove they were negatively impacted by the transaction. If you have less than six years of service, you only get protection for the length of your tenure. And when that period ends, so does the protection.

Our commitment supplements this protection; it does not replace it. While traditional labor protection provides a temporary income bridge, our unprecedented jobs-for-life commitment goes above and beyond – it promises that union employees working today can finish their careers with the combined company.

We can make that promise because growth creates jobs. A single-line, coast-to-coast railroad will bring on new freight and new customers. By the third year following the merger, we expect to add approximately 900 net new union jobs to handle that growth. As our CEO Jim Vena has said, this merger will protect union jobs and create more of them as shippers rely on more efficient service.

Railroading already provides some of the best-paid industrial careers in America. A railroad union employee’s average annual compensation and benefits is about $160,000, roughly 40% above the national industrial average. Employees have access to strong healthcare, paid leave and retirement plans, and average tenure exceeds 13 years. The combined company also will expand access to programs like free counseling, family services, tuition-free college and an employee stock purchase plan.

All of that matters because this isn’t just about today or the first year after a merger. It’s about whether people can see a future here and build a life around this work.

Railroads are built to last. This merger is about making sure the people who power them do, too.