Four rail unions reach deal with Union Pacific to protect union jobs under merger

Union Pacific Railroad and the International Brotherhood of Boilermakers (IBB) announced this week that the two have “reached an agreement that guarantees job security for union employees” as the rail company eyes a merger with Norfolk Southern.

According to a joint release from Union Pacific and IBB, the agreement ensures employees who are employed at both Union Pacific and Norfolk Southern at the time of the merger “will have job security for life, subject to the usual requirements for continued employment.”

IBB is the fourth national union to reach an agreement with Omaha-headquartered Union Pacific, following deals with the International Association of Sheet Metal, Air, Rail and Transportation workers - Transportation Division (SMART-TD), the National Conference of Firemen and Oilers (NCFO) and the Brotherhood of Railway Carmen.

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

In July, Union Pacific, the second-largest railroad company in the U.S. confirmed it was in talks with Norfolk Southern, the fourth-largest railroad, to merge companies. If the merger is approved, it would create a $200 billion company with a coast-to-coast rail network.

Union Pacific operates 32,000 miles of track in 23 states, mostly west of the Mississippi River, while Norfolk Southern operates about 19,500 miles of track across 22 states, mostly east of Mississippi. Combining the companies would make it larger than BNSF Railway, which is owned by Omaha-based Berkshire Hathaway.

Earlier this month, about 99% of shareholders of both companies voted in favor of the $85 billion deal; however, it’s far from done. The proposal still needs approval from the Surface Transportation Board through a process that could take several years.

After the merger was first announced during the summer, Nebraska Public Media News spoke with Jeff Cooley, a Union Pacific conductor who also serves as the president of SMART-TD Local 200, who had serious concerns about what the merger could mean for rail safety.

He said there was a lack of inspections for near-disasters and worried dangerous wrecks and subsequent spills, such as the East Palestine, Ohio, derailment, could be more common if safeguards are shrugged off during the merger.

“When hedge funds and Wall Street run the show, it’s all about cost, and they could care less about worker safety or about some of the industries that are going to be disenfranchised," Cooley said.

Union Pacific Vice President of Public Affairs Lisa Stark told Nebraska Public Media News the combination of resources between both rail companies will bring about more safety, not less.