Union Pacific Corporation (UNP) has entered into a tentativeagreement with the National Conference of Firemen & Oilers (“NCFO”).

The deal aims to enhance the quality of life for Union Pacific’s employees and their families by providing them with more favorableworking schedules. The deal covers a five-year term and includes wage increases, additional vacation time, health and welfare benefits and minor work rule changes.The tentative agreement has been sent to NCFO members for ratification.

The latest deal has been reached before the existing one, which ends on July 1, 2025.

Such deals reflect UNP’s employee-friendly attitude, through which it strives to maintain cordial relations with its employees and the unions representing them, thereby providing a healthy work environment at UNP. UNP currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Union Pacific chief executive officer, Jim Vena, stated, "Today's agreement will allow all of us, as railroaders, to focus on the future, growing together and providing the service we sold to our customers. I want to thank the NCFO leadership for working together through these negotiations."

Union Deals of Other Railroad Companies

Apart from UNP, other companies from the Zacks Transportation – Rail industry who have recently entered into collective deals with the unions include CSX Corporation (CSX), Canadian Pacific Railway Limited (CP) and Canadian National Railway Company (CNI).

CSX

On March 3, 2025, CSX announced that employees represented by The International Association of Machinists & Aerospace Workers have voted to ratify the five-year collective bargaining agreement.

So far, CSX has ratified agreements with 11 labor unions, which cover 14 different work groups and represent 47% of its unionized workforce. The deal aims to offer equivalent packages of improved wages, health care, and paid time off benefits.

Canadian Pacific

On Feb. 24, 2025, Canadian Pacific announced that it had ratified a new four-year collective agreement with Unifor, representing approximately 1,200 mechanical employees in Canada. This agreement, which includes improved wages and benefits, provides long-term labor stability and strengthens collaboration between CP and Unifor. It marks the second collective agreement ratified by CP employees in Canada this year, following a similar agreement with the Teamsters Canada Rail Conference Maintenance of Way Employees Division (TCRC-MWED) in February 2025. TCRC-MWED covers almost 2,600 engineering services employees in Canada.

CP has a track record of successfully dealing with multiple unions representing craft employees. In the last few months, CP has inked 16 agreements in 2023 in Canadaand the United States.

Canadian National

On Feb. 17, 2025, CNI announced that its new four-year tentative collective agreement with the International Brotherhood of Electric Workers had been ratified on Feb. 14, 2025. The union represents almost 750 signals and communications employees at CNIin Canada. This new four-year agreement includes 3% wage increases annually. It will expire on Dec. 31, 2028.

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