Financial differences slowing Union Pacific’s handoff to Metra

It’s been years since Union Pacific Railroad announced it was done with operating Metra trains. So when can riders expect Metra to take over the three popular North, Northwest and West UP routes?

Don’t hold your breath.

UP officials announced Monday that progress had been made on staffing and management transfers.

Money, however, appears to be a sticking point.

“Financial negotiations are ongoing, including compensation for Metra’s use of Union Pacific's tracks and infrastructure,” UP said in a statement.

Since August 2024, the sides took part in mediation that ended Jan. 31 without a resolution. UP leaders are now suggesting binding arbitration.

Metra did not comment on binding arbitration, but officials said they are focused on “providing safe, reliable, efficient, and affordable commuter rail service, while being a good steward of taxpayer dollars.”

“Negotiations between Metra and Union Pacific are continuing,” Metra Communications Director Mike Gillis said. “Both of us have said that we are committed to not impacting service and that has not changed.”

UP Vice President of Public Affairs Liisa Stark said the railroad is “committed to reaching a financial agreement this year that is fair to both parties.”

What’s been achieved so far?

“Mechanical and station agent services, along with some management services, have already been successfully transferred to Metra,” UP noted. “The transfer of train operation services is expected to occur in mid-April, followed by the transfer of some engineering services.”

Gillis added, “the transition of former UP employees to Metra has continued smoothly, with the onboard employees expected to transition this spring.”

Once the switchover is complete, UP will continue to handle track upkeep and train movements on the three lines.

The dispute between the two railroads arose in 2019 and has involved lengthy court battles and the U.S. Surface Transportation Board.

UP said previously that dropping commuter trains will let it focus on “moving customers' goods in and out of Chicago and across the nation.”

Metra currently operates seven of its 11 routes.