2025 Tentative Agreement Reached Between SMART-TD and Union Pacific

After nearly one year of focused discussion and determined advocacy, SMART Transportation Division has reached a Tentative Agreement (TA) with Union Pacific Railroad (UP). Unlike most other Class I carriers, UP chose not to participate in the national bargaining process, opting instead to hold bilateral negotiations directly with SMART-TD’s General Committees of Adjustment. 

Representing our membership at the table were International Vice Presidents Brent Leonard and Gary Crest, along with General Chairpersons Roy Davis, Scott Chelette, Todd Campbell, Luke Edington, and Joey Cornelius. With UP’s insistence on maintaining provisions of the pattern set by SMART-TD and the majority of other rail labor Unions, they were determined to make improvements in other areas outside the scope of that pattern.

The TA provides all the same provisions of the pattern agreement that SMART-TD members on other Class I railroads just ratified by a nearly 70% margin of approval, including an 18.77% compounded wage increase, accelerated vacation accrual, healthcare benefit enhancements, and craft and work rule protections. For reference, here is a synopsis of those terms.

In addition to those advancements, this TA addresses some of the unique challenges faced by our UP members. More specifically, it resolves some longstanding inequity and inconsistencies with grievances and disciplinary cases, and it provides critical protections for members who are fully reinstated after being wrongfully terminated from UP.

In Addition to Pattern Provisions, The Agreement Includes: 

Medical Premium Reimbursement for Wrongfully Terminated Members 

If ratified, this agreement will require UP to reimburse all medical premiums and expenses incurred while a member was off the property awaiting arbitration. Under our current rates, COBRA coverage for a family of four costs nearly $3,700 per month, and in 2026, H&W plans under the Affordable Care Act are projected to increase by 26% on average. This agreement ensures that those who are wrongfully held out of service and fully reinstated are made truly whole, restoring not only their career but also their financial stability that was affected by the weight of paying out of pocket for health insurance.

Ending “Outside Earnings Deductions” — A 20-Year Fight Settled 

If ratified, this agreement puts an end to Union Pacific’s practice of attempting to deduct “outside earnings” from members’ back pay awards following arbitration.

For more than 20 years, UP has attempted to reduce back pay settlements won in arbitration by the amount a member earned in another job while being wrongfully held out of service. In cases where members either can’t work or choose not to find other employment, UP hires a consultant to come up with an imaginary “estimated” earnings amount based on what the railroad claims a person could have made, then they only pay the difference between what the arbitrator says you are owed and what you made, or allegedly could have made.

This has been a longstanding, grueling battle with UP. Even in cases where our members end up being paid the full amount awarded in arbitration, it requires months or even years of courtroom battles and/or follow-up arbitration. Putting an end to this nonsense is a huge victory for our members.

More specifically, Attachment A, Section IX (A) (3), of the TA puts an end to the practice of deducting outside earnings, while the other portions of Section IX ensure that reinstated members receive the full, fair back pay they deserve. This long-overdue victory could mean the difference of tens or even hundreds of thousands of dollars for affected members. 

Increased Meal Allowances

Our negotiating team recognizes and agrees that meal allowances have fallen by the wayside too many times in the past – most recently it was denied by PEB #250, and prior to that because our emphasis was on protecting our exceptional healthcare benefits, the conductor craft, wage increases, etc. With that in mind, we insisted on providing whatever amount of increase possible.

If ratified, the away from home meal allowance would increase to $10.00 after being tied up at the away from home terminal for 4 or more hours, and another $10.00 after 12 hours.

This is intended to serve as an incremental increase, and of course it will continue to be brought up in future rounds of bargaining. For the time being, every bit helps offset our away from home costs, and it demonstrates that our negotiating team refused to leave anything on the table.

What methods will be used for voting?

Packets mailed on November 5 will include personalized 12-digit access codes and instructions for dial-in telephonic voting. On November 13, text message and email reminders will be sent out to all eligible members who have not yet voted. Those electronic messages will include links to vote using a secure web-based portal. On November 21, another round of electronic links will be sent to members who have not yet voted.

When will voting end? How soon will we see the results?

Our 21-day ratification will close on Friday, November 28, at 5:00 p.m. (ET). Results will be announced the following morning.

Is it true that if I abstain from voting, my vote is automatically counted as a vote to “ACCEPT”?

Despite this being completely false, the rumor circulates every time we have a tentative agreement. Every vote is important, and only the votes cast will get counted, so don’t miss your opportunity!

What should I do if I don’t receive a ballot in the mail?

In most cases, this happens when members fail to update SMART-TD with their current home address. Occasionally, there are delays with USPS. In any case, on Thursday, November 13, we will be sending text and email ballots to all members who have not yet voted. If you still haven’t received anything by Friday, November 14, please contact us by calling (216) 227-5424, or by sending an email to: ContractQuestions@smart-union.org

A Step Forward and a Voice for Every Member 

We sincerely hope that our members recognize the value and importance of this TA and the hard work that went into arriving at this point. In any case, we encourage all members to vote and make your voice heard.

We also encourage all members to review the full TA, which can be found here and forward any questions they have to their Local Chairperson and/or General Chairperson. It is important to cast an informed and educated vote!