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🗞️ Union Pacific-Norfolk Southern Merger Faces Opposition from Teamsters-Affiliated Unions

Two Teamsters-affiliated railroad unions representing approximately 20,000 workers (53% of unionized employees at both companies) announced opposition to the proposed $85 billion merger between Union Pacific and Norfolk Southern.

onthelaborfront

onthelaborfront

— 3 min read
🗞️ Union Pacific-Norfolk Southern Merger Faces Opposition from Teamsters-Affiliated Unions

The Brotherhood of Locomotive Engineers and Trainmen (BLET) and the Brotherhood of Maintenance of Way Employees (BMWED)—both affiliated with the Teamsters union—announced opposition to the proposed $85 billion merger between Union Pacific and Norfolk Southern. The announcement represents one perspective in a divided labor landscape, as other major unions have endorsed the transaction after securing worker protections.

The merger, announced July 29, 2025, would create America's first transcontinental railroad, connecting more than 50,000 route miles across 43 states and linking approximately 100 ports. Union Pacific would acquire Norfolk Southern for $320 per share, with over 99% of shareholders approving the deal in November 2025.

Union Pacific CEO Jim Vena has committed that "every employee with a union job at the time of the merger will continue to have one," formalizing lifetime job security agreements with five unions. The company projects the merger will create new employment opportunities through expanded rail volume and reduced highway congestion.

BLET President Mark Wallace characterized the merger as creating a "choice between 'Hell or the highway'" for rail customers, while Teamsters General President Sean O'Brien stated: "We cannot and will not support any agreement or merger that fails to safeguard their lives and livelihoods."

The Teamsters-affiliated unions cite several concerns following their five-month investigation:

  • Safety History: Both railroads' safety records, including the February 3, 2023 East Palestine, Ohio derailment
  • Job Protection Details: Claims that existing union agreements contain "large loopholes" despite company commitments to preserve employment
  • Operational Changes: Concerns about potential divestment of local rail lines to short-line operators
  • Market Competitiveness: Assertions that the merger would reduce rail competitiveness versus trucking

However, the opposition creates a notable divide within railroad labor. In September 2025, SMART-TD, the nation's largest railroad union representing over 100,000 workers, endorsed the merger after Union Pacific guaranteed lifetime job protection for all SMART-TD members. SMART-TD President Jeremy R. Ferguson called it "a proud day for our members" and stated: "We are protecting jobs, protecting families, and protecting the future of the U.S. supply chain."

Norfolk Southern CEO Mark George emphasized: "Every union employee at the combined company would have a job. Today's commitment with SMART-TD takes that promise a step further and reflects our deep appreciation for and confidence in the people who keep our railroads moving every day."

Union Pacific has formalized similar job-for-life agreements with five unions total, covering thousands of railroad workers. The company maintains these agreements provide unprecedented job security protections in American railroading history.

The merger will be reviewed by the Surface Transportation Board (STB), which must approve the transaction based on public interest. Union Pacific and Norfolk Southern will submit their comprehensive application on December 19, 2025, detailing how the merger enhances competition and delivers benefits including faster freight service, expanded intermodal options, and reduced transit times. The companies expect regulatory approval and closing by early 2027.

Beyond the divided union response, the merger faces scrutiny from competing railroad BNSF, some agricultural groups, and the American Chemistry Council. Bipartisan senators have requested the STB conduct thorough review of competitive impacts.

The companies project approximately $2.75 billion in annualized synergies and more than $30 billion in potential shareholder value creation. For employees, the merger is positioned to create a stronger, more competitive railroad with enhanced job security and growth opportunities.

Key Points

  • Union Opposition: BLET and BMWED (Teamsters-affiliated) represent 20,000 workers and oppose merger after five-month investigation
  • Competing Union Support: SMART-TD (largest rail union, 100,000+ members) endorsed merger in September 2025 with lifetime job guarantees
  • Merger Details: $85 billion transaction creating first U.S. transcontinental railroad with 50,000+ route miles across 43 states
  • Worker Protections: Union Pacific formalized lifetime job security agreements with five unions; commits every union employee retains employment
  • Shareholder Approval: Over 99% of shareholders from both companies approved merger in November 2025
  • Timeline: Merger announced July 29, 2025; SMART-TD endorsement September 22, 2025; Teamsters opposition December 17, 2025; STB application December 19, 2025
  • Union Concerns: Safety records including 2023 East Palestine derailment, job protection details, operational changes, competitiveness
  • Company Position: Promises job preservation, faster service, expanded capacity, reduced highway congestion, new employment opportunities
  • Divided Labor: Largest rail union supports deal; Teamsters-affiliated unions oppose it, creating conflicting guidance for workers
  • Regulatory Path: Surface Transportation Board must approve based on public interest standard; companies target early 2027 closing
  • Additional Opposition: BNSF Railway, some agricultural groups, American Chemistry Council, bipartisan senators request scrutiny
  • Economic Impact: $2.75 billion projected annual synergies, $30 billion potential shareholder value creation

Primary Author: Jeff Berman, Group News Editor
Primary Source: Logistics Management
Primary Source Link: https://www.logisticsmgmt.com/article/teamsters_rail_conference_makes_it_case_for_the_union_pacific_norfolk_southern_proposed_merger_to_not_be_approved_by_the_stb

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