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OMAHA - Union Pacific Railroad and the National Conference of Firemen & Oilers (NCFO) have reached a tentative labor agreement, which is now pending ratification by NCFO members. This new deal, announced today, includes wage increases, additional vacation time, health benefits, and minor work rule changes, covering a five-year period.
The agreement comes ahead of the expiration of the current contract, set for July 1. Union Pacific CEO Jim Vena expressed his gratitude towards the NCFO leadership for their collaborative efforts during the negotiation process. "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," Vena said.
NCFO President Michael Pistone also acknowledged the contributions of Union Pacific’s Labor Relations and Mechanical teams and emphasized the importance of continued cooperation between the NCFO members and Union Pacific for future progress.
Union Pacific, listed as NYSE: UNP, operates in 23 western states, providing goods transportation with a focus on safety, reliability, and efficiency. The company, which generated $12.17 billion in EBITDA over the last twelve months, maintains impressive gross profit margins of 56%. According to InvestingPro, the company has maintained dividend payments for 55 consecutive years, demonstrating strong financial stability. The company also highlights its commitment to environmentally responsible freight movement as a part of its service offerings.
The specifics of the wage increases, vacation time, and health benefits were not disclosed in the press release. This tentative agreement is part of Union Pacific’s ongoing labor relations and business operations, and the ratification process by NCFO members will determine its final approval.
The information in this article is based on a press release statement from Union Pacific.
In other recent news, Union Pacific Corporation announced a $1.5 billion stock buyback through accelerated share repurchase agreements with Barclays Bank PLC and Citibank, N.A., aiming to return value to shareholders. The company also issued $2 billion in corporate notes, divided into two sets: $1 billion of 5.100% notes due in 2035 and another $1 billion of 5.600% notes due in 2054, with proceeds earmarked for general corporate purposes. Loop Capital downgraded Union Pacific’s stock rating from Hold to Sell, adjusting the price target to $200, citing concerns over tariffs affecting the North American auto industry. On a more positive note, Benchmark raised Union Pacific’s price target to $275, maintaining a Buy rating, following a strong earnings report that exceeded expectations with an EPS of $2.91. Baird analysts also increased their price target for Union Pacific to $265, highlighting the company’s effective operating leverage and robust margin performance. These developments reflect varying analyst perspectives on Union Pacific’s financial strategies and market conditions.
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