Largest U.S. Rail Union to Oppose Proposed Union Pacific & Norfolk Southern Mega‑Merger

 

Largest U.S. Rail Union to Oppose Proposed Union Pacific & Norfolk Southern Mega‑Merger

An Overview of the Deal and Union Response

On July 29, 2025, Union Pacific announced plans to acquire Norfolk Southern in an estimated $85 billion merger AP NewsReuters. This would create the nation’s first coast‑to‑coast freight rail network, covering approximately 50,000 miles across 43 states and fundamentally reshaping North America’s rail map AP NewsReutersTrainsSupply Chain Digital.

However, the largest U.S. rail union, known as SMART Transportation Division (SMART‑TD), has announced its strong intention to formally oppose the merger. The union has cited serious concerns about Union Pacific’s labor practices, worker safety, and the overall welfare of the rail industry ReutersAOL.

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Who Is SMART‑TD?

SMART‑TD is the Transportation Division of the International Association of Sheet Metal, Air, Rail and Transportation Workers. With around 125,000 members across railroad, bus, and transit sectors (and over 200,000 in the larger SMART union), it is by far the largest rail workers organisation in the U.S. ReutersAOL.

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Why Is the Union Opposing the Merger?

SMART‑TD has issued a warning to stakeholders and regulators to approach the merger with “measured skepticism”. Key concerns include:

• Union Pacific’s safety warnings: The union cites public data showing UP leads the industry in accidents, injuries, and fatalities, suggesting a corporate culture that prioritises aggressive cost targets over safety AOLSMART Union.

• Allegations of harassment and retaliation: SMART‑TD alleges UP management frequently engages in excessive harassment and retaliation against workers during ongoing contract negotiations ReutersAOL.

In contrast, SMART‑TD praises Norfolk Southern for more transparent and progressive labour policies, including training investments and public pledges not to lay off conductors or engineers during slowdowns ReutersAOL.

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What Is the Union Doing About It?

SMART‑TD plans to present its opposition directly to the Surface Transportation Board (STB), the federal agency responsible for approving rail mergers. It intends to raise concerns during the public comment period, highlighting risks to workers, safety standards, and overall service quality ReutersAOL.

The STB will evaluate whether the merger serves public interest, maintains fair competition, and addresses union concerns. Given the size of the proposed union, this regulatory review is expected to be both lengthy and strict under new rules introduced in 2001 ReutersRailway AgeSupply Chain Digital.

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Other Unions and Workers' Voices

While SMART‑TD has taken the lead against the merger, other unions are also watching closely:

• The Brotherhood of Locomotive Engineers and Trainmen (BLET), representing about 32,000 workers, has not formally opposed the deal but has raised alarms about UP’s plans to employ Mexican crews on cross-border service, potentially replacing American engineers. They highlighted concerns over job displacement and national security in a letter to President Trump AOLAOL.

• The Teamsters Rail Conference, comprising over 70,000 rail workers, said it will refrain from taking a public position until it meets directly with UP and NS executives. Their stance will rely heavily on how the merger might impact rail operations, employment, and safety AOLAOL.

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Why Does This Matter Internationally?

Though this is a U.S. rail issue, its implications are global:

• If approved, the deal would set off a domino effect, prompting other major rail firms like BNSF and CSX to consider consolidating themselves to stay competitive TT NewsRailFreight.com.

• This merger follows the 2023 Canadian Pacific–Kansas City Southern deal (CPKC), which linked Canada, the U.S., and Mexico. If the UP-NS deal gets through, North American rail could shrink to four mega networks controlling most freight, reducing competition and options for exporters and shippers across the region Railway AgeRailFreight.comThe Week.

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Union Pacific's Response

Union Pacific insists the merger will benefit U.S. shippers with faster, more efficient freight services. CEO Jim Vena argues that combining UP’s western routes with Norfolk’s eastern network would cut delays at interchange points, like in Chicago, and strengthen the ability to compete with road transport and Canadian rail systems AP NewsSupply Chain DigitalTrains.

He described the merged entity as “great for America,” capable of boosting supply chain efficiency and reinforcing service reliability TT NewsWall Street JournalAP News.

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What’s at Stake in the Regulatory Process?

Key issues for the Surface Transportation Board (STB) review include:

• Competition: Would this reduce options for shippers and customers?

• Public interest and safety: Could the merger compromise working conditions or safety standards?

• Labor relations: Would job protections and union agreements be protected?

• Regulatory history: The STB has blocked previous mega-mergers that caused industrial disruptions, like the failed CN attempt to buy Kansas City Southern in 2021 ReutersSMART Union.

The current STB board is thought to be politically split, but a new appointment under the Trump administration may tip the balance toward a more pro-consolidation stance Railway AgeSupply Chain DigitalReuters.

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What Could Be the Outcome?

If approved:

• A nationwide rail giant stretching from Los Angeles to the Atlantic coast, eliminating delays and shaping freight logistics in North America.

• Significant cost savings and revenue gains for the merged company over time.

• Likely pressure on other major railroads to consolidate in response.

• Potential loss of independent routes or reduced service levels in less profitable regions.

• Increased regulatory oversight from STB, unions, and possibly Congress.

If blocked:

• The merger may still strain UP-NS relations without any final deal.

• Labor groups and shippers would retain more negotiating power.

• UP and Norfolk Southern may need to revisit or abandon consolidation plans.

• It may discourage large-scale rail consolidation across North America.

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In Summary

• SMART‑TD, the largest U.S. rail union, has formally declared opposition to the proposed Union Pacific–Norfolk Southern merger.

• The union argues that UP’s safety and labour history is troubling, and the merger could harm workers, service, and competition.

• Other unions are monitoring or raising related concerns, particularly about border labor practices.

• The merger promises coast-to-coast efficiency but faces major obstacles from regulators, labour groups, and industry critics.

This is a pivotal moment — not only for the U.S. but for global trade and logistics. The STB’s decision will determine whether this mega-merger becomes reality or remains just another plan in the tumultuous history of rail consolidation.

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