Rail Unions Oppose $85 Billion Merger, Cite Safety and Competition Concerns

Two prominent railway workers unions have publicly opposed the proposed merger of Union Pacific Railroad and Norfolk Southern Corporation, valued at $85 billion. The Brotherhood of Locomotive Engineers and Trainmen and the Brotherhood of Maintenance of Way Employees Division, which together represent over half of the employees at both companies, have raised concerns that the merger would significantly reduce competition and compromise worker safety.

The merger, if approved by the U.S. Surface Transportation Board, would create the largest railroad company in U.S. history, controlling more than 50,000 miles of track across 43 states. According to the Associated Press, this consolidation could lead to the merged entity controlling over 40% of the nation’s freight capacity. The unions argue that this level of consolidation would effectively create a “de facto monopoly” that would limit options for shippers and increase costs for consumers.

Mark Wallace, national president of the Brotherhood of Locomotive Engineers and Trainmen (BLET), expressed concern over the implications of the merger for rail customers. He 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 this would leave customers with a choice between “Hell or the highway.”

Concerns Over Safety and Job Protections

The unions highlighted the implications of loosened merger regulations that have allowed for increased consolidation in the railway industry over the past four decades. In 1980, there were approximately 40 different Class 1 railroads in the U.S.; by 2025, that number has dwindled to just six. An analysis conducted by the American Economic Liberties Project noted that such consolidation has led to a deterioration in service, limited options, and increased prices for shippers. It also indicated that workers have faced job losses and worsening working conditions.

While acknowledging Norfolk Southern’s investment in safety improvements following a catastrophic derailment in East Palestine, Ohio, in early 2023, unions criticized Union Pacific for its safety practices. They claim Union Pacific has actively undermined government safety assessments and has pressured employees to provide preferred responses during inspections from the Federal Railroad Administration.

Union Pacific CEO Jim Vena has received support for the merger from SMART-TD, the nation’s largest railroad union, which cited commitments regarding job security. Despite this backing, BLET and the Brotherhood of Maintenance of Way Employees Division (BMWED) argue that these promises lack substance. Tony Cardwell, president of the BMWED, stated, “We don’t believe anything Vena says about how workers would be treated in the Supersized Union Pacific.” He described the agreements reached with other unions as containing loopholes that could undermine job protections.

Potential Impact on the Industry and Workforce

If the merger proceeds, it could have far-reaching effects on the railroad industry. The unions warn that the consolidation could lead to further reductions in service quality and increased shipping costs, ultimately affecting consumers and small businesses that rely on rail transport. They are calling for a thorough review of the proposed merger and its potential implications for competition and worker safety.

The unions’ strong opposition emphasizes the need for careful regulatory scrutiny as the U.S. faces ongoing challenges in transportation, safety, and economic viability in the rail sector. With the formal proposal expected to be submitted to the U.S. Surface Transportation Board, the outcome of this merger could reshape the landscape of American railroads for years to come.