After the SMART Railroad, Mechanical and Engineering Department (SMART-MD) reached a tentative agreement for SMART-MD members working on Union Pacific Railroad (UP), the American Arbitration Association has finalized the vote count and advised that members ratified their agreement unanimously.
The agreement is based on the terms of the agreements reached with other freight rail carriers and provides a variety of improvements including:
- Annual general wage increases effective July 1st of each calendar year, totaling 17.5% (over 18.75% when compounded).
- Paid vacation days for new-hire employees and accelerated qualification and accrual of paid vacation for tenured employees.
- Substantial increases for vision frame allowances from $115 to $250 every two years and the orthodontia lifetime maximum benefit increased from $1,000 to $2,500 per covered individual.
- Optional high-deductible health plan with lower monthly cost-share contribution that will be available in 2026.
- Increased Opt-Out Payment of $200 per month for employees who select not to have health insurance.
SMART-MD members should expect backpay issued by UP within sixty (60) days of August 29, 2025 (October 24, 2025).
“Our Railroad, Mechanical and Engineering Department dedicated themselves to reaching an agreement that met the demands of our members. With this 100% ratification vote, SMART members at Union Pacific made one thing clear: this is an agreement they can be proud of, and that recognizes their work,” said SMART General President Michael Coleman. “SMART members keep our economy moving, and they deserve a contract that rewards them for that. I’m proud of every member who stood up for what they have earned, and I congratulate the SMART-MD negotiating team for securing real gains for our members.”
“This ratification is a clear victory for our UP members,” said SMART General Committee 2 Directing Chairperson John McCloskey. “It reflects their unity and commitment to securing a stronger future. Thank you to every member that voted to make this agreement possible.”
“The ratified agreement provides real wage increases, plus substantial improvements to paid time off and health and welfare benefits with an added benefit option for those that want it in 2026,” added SMART-MD Director Peter Kennedy. “It is a respectable agreement, and I appreciate the members taking the time to review their ratification packet and vote their conscience.”