Dispatcher Total Compensation

From 2015 to 2023, UP train dispatchers’ average pay increases exceed union-represented Class 1 train dispatchers. During these last nine years, UP dispatchers’ average wage increase was equal to or greater than union-represented dispatcher increases in 6 of the 9 years.

Although UP doesn’t often refer to averages because each management employee is paid on merit, it’s useful to consider averages in the context of compensation.

The average total compensation (includes salary, bonus and equity) for a Union Pacific train dispatcher as of March 1, 2023 is $129,950, which is higher than the estimated Class 1 union-represented train dispatcher average total compensation as of July 1, 2023 of $126,489.

After adding in the value of the employee benefits UP provides to each train dispatcher, the total rewards (compensation and benefits) package for UP dispatchers is significantly more valuable than union-represented train dispatcher compensation and benefits.

As shown in the table, when compared to Class 1 union-represented train dispatcher offerings, UP train dispatchers receive significantly richer benefits for retirement plans, short-term disability, long-term disability, and life insurance/AD&D. In addition, UP’s medical benefits are very competitive with union-represented medical benefits.

 

Merit Increase Comparison

Year Union Pacific Average Merit Increases Negotiated General Wage Increases
2024 Pending 4.50
2023 5.03 4.00
2022 8.99 7.00
2021 1.56 3.50
2020 2.30 3.00
2019 2.51 3.00
2018 2.50 2.50
2017 2.46 2.00
2016 2.93 2.00
2015 4.00 3.00

2023 Total Compensation Comparison

  Union Pacific Train Dispatchers Union-Represented Train Dispatchers
Average Salary

$118,176 (1)

as of March 1, 2023

$126,489 (2)

as of July 1, 2023

Average Total Pay
(incl. bonus & equity)

$129,950

as of March 1, 2023

$127,489

as of July 1, 2023

Annual H&W Premium (3)
(single/family)

$865/$3,912 $3,711
Union Dues None $1,404 (4)
Pension/401(k)
(hired prior to 1/1/18)
Pension & Match 50% up to 6% No
Comprehensive 401(k)
(hired 1/1/18 or after)
Match 100% up to 6% & additional 3% UP contribution No
Short-Term Disability 75%–100% of pay
up to 6 months
Sick days negotiated
Long-Term Disability Core benefits at 50% of base salary
buyup to 62% of base salary + bonus
None
H&W Benefits
(single/family)
Choice of HDHPs or PPO MMCP or CHCB (in certain locations)
Savings Accounts HSA FSA
Best Case Cost (5) ($864)/$480 $3,711
Worst Case Cost (5) $4,136/$10,480 $6,061/$8,411
Life Insurance Up to $50,000 free
option to buy 8x pay; buy spouse and child coverage
$20,000 free
AD&D Up to $50,000 free
option to buy 8x pay
$16,000 free
Early Retiree Medical
(hired prior to 1/1/04)
Yes Yes
Lifetime Maximum Per Person $2,000,000 $188,000

(1) Average for dispatchers eligible for end of year merit increases effective March, 1 2023.
(2) 2021average of all NCCC carriers (excluding UP) adjusted for negotiated general wage increases through July 1, 2023.
(3) Nonagreement figures is weighted average of HDHP1, HDHP2, PPO plus dental and vision.
(4) 2020 estimated Union Dues
(5) Assumes HDHP1 for nonagreement and MMCP for agreement, i.e. largest enrollments.