SMART-TD Condemns Union Pacific’s Lease To Central Oregon Pacific Railroad

A Setback for Safety and American Workers

Independence, OH December 13, 2024 – The International Association of Sheet Metal, Air, Rail and Transportation Workers-Transportation Division (SMART-TD) is speaking out against Union Pacific’s (UP) recent decision to lease its interest in Oregon’s railroad operations to the Central Oregon Pacific Railroad (CORP). This move, announced in Progressive Railroading magazine on December 11, 2024, is being strongly condemned by America’s largest rail labor unions as a reckless, cost-cutting measure that endangers safety, reduces the reliability of freight services, and undercuts the livelihoods of hardworking Americans.

Under the new arrangement, UP will relinquish control of rail operations between Eugene, Oregon, and Northern California, including critical freight transportation that supports regional businesses and industries. The lease to CORP, a short-line railroad, will result in the loss of 30 highly-skilled, FRA-certified Class I railroad jobs that will be replaced with about 15 new CORP employees, who will be held to less stringent qualifications. This significant downgrade in workforce quality, combined with a substantial reduction in experience, will lead to serious safety risks for rail employees and the surrounding communities.

“This lease UP is trying to finalize with CORP is a blatant example of hedge fund-driven railroading, where the financial interests of Wall Street investors outweigh the safety and well-being of workers and communities,” said SMART-TD President Jeremy Ferguson. “The unionized, highly-trained workforce that Union Pacific is discarding has the qualifications necessary to operate these trains safely. By replacing them with a less-experienced and less-qualified workforce, UP is not only jeopardizing rail safety but also diminishing the ability to ensure smooth and reliable service for the businesses and industries that depend on this vital transportation network.”

For years, the workers on this stretch of track have operated under strict safety standards, ensuring that the 20,000-ton trains that travel this route are operated with the utmost care. With the transition to CORP, the risk of accidents, delays, and other operational failures has increased dramatically. The fewer, less-experienced employees handling freight operations will almost certainly cause inefficiencies and slower response times, further burdening businesses reliant on quick deliveries of raw materials and distribution of goods.

The communities along the affected rail lines will feel the brunt of this change. Local businesses, manufacturers, and other rail-dependent industries will face slower delivery times and less reliable service. Adding additional interchanges and carriers will result in more delays in the supply chain and more costs to shippers.  The diminished workforce will also mean fewer skilled personnel available to handle problems and issues that arise, leading to greater service interruptions and delays.

“The American people deserve a reliable, safe, and efficient rail system that can carry the nation’s freight with the highest standards,” said Ferguson. “Union Pacific’s move in Oregon is just the latest example of how our country is literally getting “Railroaded” by the sharks on Wall Street. The workers on the ground, the businesses, and the communities that rely on these services will pay the price for this callous disregard for safety.”

SMART-TD is committed to fighting for the protection of American rail workers, the safety of the public, and the long-term stability of the U.S. freight rail network. The union is calling on policymakers to take action to prevent further harmful short-term profit-driven cuts and encourage greater oversight of the railroad industry to ensure that safety and reliability remain the top priorities.

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If you’re interested in speaking more about the legislation, we’d be happy to connect you with: 

SMART Transportation Division President Jeremy Ferguson  

President Jeremy Ferguson, a member of Local 313 in Grand Rapids, Mich., was elected president of SMART’s Transportation Division in 2019.  

President Ferguson, an Army veteran, started railroading in 1994 as a conductor on CSX at Grand Rapids, Mich. and was promoted to engineer in 1995. Ferguson headed the recent national rail negotiations for the Union with the nation’s rail carriers. 

SMART Transportation Division National Legislative Director Gregory Hynes 

Greg Hynes is a fifth-generation railroader and was elected national legislative director in 2019. 

Hynes served on the SMART Transportation Division National Safety Team that assists the National Transportation Safety Board with accident investigations, from 2007 – 2014.  

In 2014, he was appointed to the Federal Railroad Administration’s Railroad Safety Advisory Committee (RSAC), which develops new railroad regulatory standards.  

Hynes was appointed the first chairperson of the UTU Rail Safety Task Force in 2009 and served in that capacity until being elected SMART Transportation Division alternate national legislative director at the Transportation Division’s 2014 convention. 

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