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Home » Unions Vow to Fight $85B Rail Merger Over 'Catastrophic' Risks

Unions Vow to Fight $85B Rail Merger Over 'Catastrophic' Risks

A BRIGHT ORANGE TRAIN WITH THE BLUE AND RED UNION PACIFIC LOGO PROCEEDS ALONG TRACKS UNDER A BLUE SKY

Photo: iStock / Osarieme Eweka

August 25, 2025
SupplyChainBrain

U.S. rail unions claim that a proposed merger between Union Pacific and Norfolk Southern could jeopardize rail safety, slow down freight service, and lead to sweeping job cuts.

UP announced the $85 billion deal on July 29 to acquire Norfolk Southern, which would put 40% of United States' rail freight in the hands of a single company. Labor groups have been outspoken in their opposition to the deal ever since, with the Transport Workers Union (TWU) warning of "catastrophic" consequences should it go through.

"There is no world where Union Pacific should be controlling a coast-to-coast rail network," TWI president John Samuelsen said in a July 29 release. "They are not to be trusted by railroad workers nationwide, and the TWU will fight any attempt to ram through a merger that Wall Street might like, but is bad for railroad workers and the safety of everyone."

The TWU pointed to what it described as a "shameful safety record," including one instance in May 2024 when the Federal Railroad Administration (FRA) determined that UP managers had undermined government safety assessments that took place following a string of high-profile derailments. At the time, the FRA found that several UP employees had been coached by their managers to provide specific, scripted responses to any questions regarding safety, and that other workers were reluctant to interview with the FRA at all for fear of retaliation from UP.

The Sheet Metal, Air, Rail and Transportation (SMART) union — the largest rail labor organization in the country — voiced similar concerns in a separate release, pointing to UP's "troubling safety record."

"Publicly available data from recent years reveals UP leads the industry in accidents, incidents, injuries and fatalities," the group said. "This trend reflects a broader corporate culture that, in our view, prioritizes aggressive operating ratios over worker and public safety."

SMART also asserted that UP has shown a willingness to furlough or lay off conductors and engineers, "even during periods of stable or growing traffic." The group further warned that merging the two railroads would create a duopoly that would lead to higher freight costs, fewer service options and less competition. 

In a statement to the Guardian, UP defended the merger as a win for its customers, workforce and shareholders. UP CEO Jim Vena has also previously vowed to ensure that all union employees for both UP and Norfolk Southern would have jobs once the merger is complete. 

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