Politics
Rail Unions Oppose $85B Union Pacific-Norfolk Southern Merger
Two prominent railway unions in the United States have publicly opposed the proposed **$85 billion** merger between **Union Pacific Railroad** and **Norfolk Southern Corporation**, citing concerns over increased monopoly power, competition loss, and potential risks to worker safety. The two unions, the **Brotherhood of Locomotive Engineers and Trainmen** (BLET) and the **Brotherhood of Maintenance of Way Employees Division** (BMWED), represent more than half of the workforce at both companies.
The **US Surface Transportation Board** is set to receive a formal proposal from Union Pacific and Norfolk Southern, which aims to create the largest railroad company in US history, controlling over **50,000 miles** of track across **43 states**. If approved, this merger could result in the new entity controlling approximately **40%** of the nation’s freight capacity.
Union leaders have expressed strong opposition, warning that the merger would establish a “de facto monopoly” in many regions. **Mark Wallace**, national president of BLET, stated, “We believe this transcontinental railroad will make shipping by rail less attractive as the merged carrier passes off rail lines that serve small towns, factories, and farms to short line railroads, while running miles-long slow-moving trains on the main line.” He added that for rail customers, the decision would often boil down to “Hell or the highway.”
The unions’ concerns are amplified by a historical context of railway consolidation, which has seen the number of **Class 1 railroads** in the US decrease from around **40 in 1980** to just **six** by 2025. An analysis by the **American Economic Liberties Project** noted that this consolidation has led to poorer service for shippers, fewer options, and higher prices, alongside job losses and increased strain on remaining workers.
Despite acknowledging Norfolk Southern’s investment in safety measures following a significant derailment in **East Palestine, Ohio**, the unions criticized Union Pacific for its lack of commitment to safety, alleging that the company has engaged in practices that undermine regulatory assessments. During the Biden administration, federal regulators found that Union Pacific had coached employees on how to respond to inquiries from the **Federal Railroad Administration**, threatening disciplinary action for unsatisfactory answers.
While the merger has garnered some support from **SMART-TD**, the nation’s largest railroad union, based on assurances from Union Pacific CEO **Jim Vena** regarding job security, BLET and BMWED remain skeptical. They argue that the commitments made lack substance and that the terms allow for significant discretion regarding worker protections.
**Tony Cardwell**, president of BMWED, expressed distrust in Vena’s statements: “We don’t believe anything Vena says about how workers would be treated in the Supersized Union Pacific. The agreements reached with some other unions related to job protections post-merger have loopholes big enough to traverse freight trains through.”
As the merger proposal moves forward, the implications for both competition in the freight market and the safety of railway operations remain pressing concerns for unions and workers alike. The outcome will likely have lasting effects on the industry and the communities that rely on these crucial transport services.
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