A transformative consolidation in the U.S. rail industry is underway as Union Pacific (UP) and Norfolk Southern (NS) prepare to submit their proposed $85 billion merger for approval by the Surface Transportation Board (STB). This ambitious plan to create America's first transcontinental railroad, however, faces mounting resistance from labor unions and industry stakeholders.
Unions: Majority Opposition Over Monopoly and Safety Concerns
The Teamsters Rail Conference, representing the Brotherhood of Locomotive Engineers and Trainmen (BLET) and Brotherhood of Maintenance of Way Employes Division (BMWED), reports that over half of UP and NS unionized employees oppose the merger. These two unions collectively represent 53% of the combined workforce at both railroads.
BLET National President Mark Wallace voiced strong objections: "This debt-laden combination won't enhance rail competitiveness against trucks as proponents claim. We believe this transcontinental railroad would diminish rail's appeal by transferring small-town service to short-line operators while running slow-moving, multi-mile-long trains on mainlines. For customers, it becomes a choice between hell or the highway."
The unions note broader industry opposition, including an October letter from the American Chemistry Council and 40 member companies to then-President Trump expressing concerns. The Rail Customer Coalition similarly warned the STB that mergers typically reduce competition while degrading service quality and eliminating jobs.
Safety Risks: Cultural Clashes and Operational Hazards
Beyond competitive concerns, unions highlight inherent safety risks in merging two railroads with divergent corporate cultures. They reference NS's painful lessons from the 2023 East Palestine derailment while criticizing UP for "cutting corners and resisting necessary reforms." Notably, UP operates trains exceeding three miles in length - a practice unions claim increases safety and security risks.
Job Security: Empty Promises or Binding Guarantees?
Labor representatives accuse UP of offering illusory employment protections, arguing the proposed terms grant the company unilateral control over which positions are preserved. "The proposal lets management decide who's protected, who's excluded, and when commitments can be modified or revoked," union officials stated.
Industry Landscape: Reshaping Competitive Dynamics
BNSF Executive Vice President Tom Williams described the merger as venturing into "uncharted territory" during last month's RailTrends conference. He noted this would be the first major merger application evaluated under the STB's 2001 rules requiring proof of enhanced competition and public benefit.
"The 'enhanced competition' standard remains untested," Williams observed. "Common sense suggests this provision wasn't designed to protect non-rail customers. When considering competition against trucking, this merger fails that test. With 10,800 stations potentially closing unconditionally, it's unclear how this maintains - let alone strengthens - competition."
Williams emphasized that approval would immediately eliminate two of four existing transcontinental route options (UP-NS and BNSF-NS), effectively removing all associated feeder lines from the competitive landscape.
UP's Vision: Creating a More Efficient National Network
UP CEO Jim Vena countered these arguments at RailTrends, questioning why the industry tolerates inefficiencies that add 15-25% costs through inter-railroad transfers. "Why shouldn't we optimize resources for customers competing globally?" he asked. The merged entity would shift freight from trucks to rails, particularly for UP-NS transfers currently routed through Chicago.
Vena illustrated benefits using Arizona-to-East-Coast copper shipments, where single-line service eliminates complex handoffs. He cited nearly 2,000 supportive customer letters and pledged to combine both companies' best practices while reducing handling points to improve safety and reliability.
Labor Protections: Lifetime Employment Guarantee
Addressing workforce concerns, Vena committed to preserving all union jobs at both companies upon merger completion with lifetime employment guarantees. He highlighted growth opportunities, like streamlining Mississippi Valley timber shipments currently trucked to Texas due to interchange complexities.