Union Pacific team,

All of you should be proud of your contributions to delivering a strong quarter both financially and operationally. Our focus on the fundamentals of operating a safe, reliable railroad is reflected in our industry-leading results. Those results may be measured in numbers, but what is truly remarkable are the countless actions behind them, especially by frontline employees who move the millions of rail cars and containers our customers entrust to us. Success requires smart, well-trained people who lead with safety, share a clear vision for the future and understand how each of us can help make this company better.

As announced in our third quarter news release, we executed at a consistently high level while handling 6% more volume. Freight car velocity was up 1% and terminal dwell was down 2%. Despite the typical challenges that come with working outdoors, we maintained these metrics while increasing our business. It is proof that our Safety, Service and Operational Excellence strategy is working.

Our injury and incident metrics also improved against a 3-year rolling average, but, of course, until we reach zero, they are not where we want them to be. We will always look for ways to be better. We will continue investing in our people, training and infrastructure, and we will use the latest technology to be even better.

I like being out in the field, and I’ve spent time, though not as much as I’d like, visiting teams to hear directly from them. Over the last few months, I met employees working on infrastructure and track projects in Los Angeles, Yermo and Las Vegas. I also spent some time at Norfolk Southern’s Kansas City intermodal terminal. Everyone I talked to was singularly focused on safety and the service being delivered to our customers. They understand that is what we do and how we move America forward.

On the merger, I have met with hundreds of people — from politicians at the federal, state and local levels to customers and port operators — and they all have thoughts about what we’re doing to create America’s first transcontinental railroad. The feedback is not always aligned. But after learning about the benefits of a single-line railroad that ties the East and West Coasts and the Northern border to the South, they understand how our combination is fundamentally a better option for their business and community.

Some people have asked if the information we’ve given to the Surface Transportation Board (STB) is complete enough. From the beginning, we asked the STB to approve a process that allows for open dialogue with the STB Board and staff, and we recently repeated that request. We are not afraid to discuss what we are doing and why, and we want to make sure the STB has the information it wants to make the right decision.

Even after a year, people are still surprised that we have unconditionally and without any escape clause guaranteed every unionized employee at the time of the merger a job for life. I keep getting the question, “What does that mean?” It is simple: If you are an employee working under a collective bargaining agreement, you will have a job working under the same contract for life or for as long as you want to be with Union Pacific, which I hope will be a full and rewarding career. We have also been clear that we see growth from taking ~2.1 million truckloads off the road annually, and we will need more people working on the railroad.

It was important to me from the start of this process that unionized employees not worry about whether they were going to be impacted by the merger. These are the people who work on trains, fix the track, inspect the signal system, repair cars and keep locomotives running — they are fundamental to what we do and how we succeed. I would love to have an 18-year-old who hires on one week before the merger is completed to know they have a job at Union Pacific, which provides an average annual salary including benefits of $160,000, for the rest of their career. It’s an opportunity to create a better future for themselves and their family.

The STB published a timeline of May 28, 2027, as the completion of information gathering. That timeline is mandated by statute, and we expect the board will work hard to receive all the information it needs to make its decision. I see it as straightforward: Does the United States deserve a seamless railroad system that competes with the trucks on the road as well as Berkshire Hathaway-owned BNSF in the west, CSX in the east, and CN and CPKC operating through the central U.S. out of Canada? The answer is yes.

If the rail industry does not move forward, it will be left behind. Companies are already making driverless deliveries on America’s highways. Aurora alone expects to have 200 driverless trucks by the end of this year, and more than 30,000 by 2030. The future is happening now. American companies deserve the opportunity to compete globally with a seamless supply chain that reduces costs by removing handoffs and speeding up deliveries.

You may have seen me on Fox Business a couple weeks ago, where I said I am 99.99% confident this merger will be approved. We look forward to offering an enhanced product to customers who want to ship products across the country. The combination will force the other railroads to be better if they want to compete and offer the price and service that the new Union Pacific will provide.

You can be assured, just as I said in my first letter when I started as CEO, I’m going to be honest and frank with you. I expect a lot out of myself and out of you. We win not by looking at what we did yesterday, but at what is possible. Thank you for everything you do.

Stay safe, stay focused and keep looking ahead to deliver for America,

Jim Vena

Union Pacific CEO