Worker Union Objects the Merger of the Biggest Railroad Companies in the US

Last month, Union Pacific announced a $85 billion deal to buy Norfolk Southern, creating the first transcontinental railroad network in the US. But union leaders are concerned that the merger could cause safety risks.

A planned merger between the two largest railroad companies in the US is expected to negatively impact jobs, increase costs for consumers, and increase the risk of more catastrophic train accidents, according to workers and unions.

Last month, Union Pacific announced a $85 billion deal to buy Norfolk Southern, creating the first transcontinental railroad network in the United States.

But union leaders are concerned that the merger could cause safety risks. They are scared after the Norfolk Southern derailment in East Palestine, which caused the release of toxic chemicals into the air.

John Samuelsen, President of the Transport Workers Union, stated that workers do not want the merger to proceed. He fears that an increase in the power of freight rail companies will make them more profitable but affect workers and the public.

The two companies expect the merger to give annual savings of $2.75 billion. Samuelsen pointed out that such savings will lead to workforce reduction, which is a longstanding issue in the railroad industry.

The Smart Transportation Division, the largest rail labour union in the US, has also opposed the merger due to Union Pacific’s history of safety issues and labor relations.

After the East Palestine derailment incident, a railroad safety bill has stalled in Congress, despite the support of US Senator JD Vance. Additionally, the Trump administration was more lenient in approving corporate mergers.

Six Class I railroads dominate most of the US rail network: BNSF Railway, Union Pacific, Norfolk Southern, CSX, Canadian National Railway, and CPKC, which emerged from the merger of two railroad companies in 2023. The number of Class I companies in the United States has reduced from 39 in 1980.

Nick Wurst, general secretary of Railroad Workers United and a freight conductor in Massachusetts, was concerned about the increased power a merger between two Class I railroads would give to an already powerful industry, which would lead to workforce reduction.

The news of the merger raised concerns, more like speculation that other companies, such as BNSF and CSX, might also merge.

Jeff Kurtz, a former railroad worker at BNSF, stated that he felt alarmed primarily because the merger would increase the power of Union Pacific and Norfolk Southern, referring to the 1996 merger of the Burlington Northern Railroad and the Santa Fe Railway, which formed BNSF. Kurtz noted that this merger could lead to the relocation of terminals and a reduction in workforce in smaller towns.

Kurtz pointed out that the workforce for class I railroads has declined from 450,000 in 1980 to roughly 122,000 in 2024. Weaver mentioned that mergers never benefit the workers, public, shippers, or consumers, as they only raise costs.

Seven industry groups representing shippers, including the National Industrial Transportation League, the American Chemistry Council, and the Freight Rail Customer Alliance, have opposed any kind of railroad mergers, arguing that these companies already dominate the market.

Norfolk Southern declines to comment and redirects to Union Pacific. A Union Pacific representative chose to comment but referred to a statement on the company’s website claiming that the merger will be a win for the US economy.

They asserted that it will also benefit customers, the workforce, and shareholders, arguing that it will transform the US supply chain, unleash the industrial strengths of American manufacturing, and create new opportunities for economic growth and job creation while maintaining union jobs.

They also mentioned that Transload Group, a rail transloading and logistics service provider that has partnered with Norfolk Southern in the past, is supporting the merger.