Rail Unions Raise Concerns Over $85B Union Pacific–Norfolk Southern Mega-Merger

The proposed $85 billion merger between freight rail titans Union Pacific and Norfolk Southern — set to establish the inaugural coast-to-coast single-line railroad in U.S. history — is encountering growing resistance from labor unions, despite passing significant regulatory milestones.

This week, prominent rail unions reiterated their disapproval of the monumental deal, cautioning that the consolidation could pose severe threats to worker safety, employment, and shipping expenses. The SMART Transportation Division (SMART-TD), the largest railroad operating union in the U.S., has pledged to contest the merger before the Surface Transportation Board (STB), citing Union Pacific’s labor relations history and safety apprehensions. The Brotherhood of Railroad Signalmen (BRS) reiterated these concerns, insisting that “safety standards must be fortified, not disregarded, in the pursuit of efficiency.”

In the meantime, the STB this week unanimously dismissed three motions to reject the railroads’ revised merger application, allowing the review process to continue. However, the board’s newest member issued a stern warning to the companies. If approved, the combined railroad would extend over 50,000 route miles across 43 states, linking more than 100 ports and potentially transferring 2.1 million truckloads annually from highways to rail. The deal’s total value could surpass $250 billion upon completion.

A conclusive STB decision is anticipated in 2027, and the companies remain hopeful. Nevertheless, opposition from unions, rival carriers BNSF and CSX, and shipper groups continues to intensify.

Source: WWD/Sourcing Journal – STB Lets UP-NS Merger Proceed