2 big rail unions oppose $85 billion Union Pacific-Norfolk Southern merger

Core Viewpoint - The proposed $85 billion merger between Union Pacific and Norfolk Southern railroads faces significant opposition from two major unions, raising concerns about safety, job security, shipping rates, and competition [1][2]. Union Opposition - The Brotherhood of Locomotive Engineers and Trainmen and the Brotherhood of Maintenance of Way Employes Division have expressed strong criticism, fearing the merger will jeopardize jobs and safety while increasing costs for consumers [2][6]. - These unions are joining other stakeholders, including the American Chemistry Council and agricultural groups, in opposing the merger due to concerns about reduced competition [2]. Support for the Merger - The merger has backing from the largest rail union representing conductors and individual shippers, as well as support from President Donald Trump, who views the deal favorably [3][7]. - Union Pacific CEO Jim Vena argues that the merger would enhance economic efficiency by eliminating the need for hand-offs between railroads, thus speeding up shipments [4]. Job Security Concerns - Union Pacific has stated that all employees with union jobs at the time of the merger will retain their positions, formalizing a jobs-for-life agreement with five unions [5]. - However, there are concerns that job numbers could still decline through attrition, as employees may leave voluntarily [5]. Safety and Service Quality - Unions worry that the merger could lead to a decline in safety standards, particularly given Union Pacific's slower improvements compared to Norfolk Southern since a major derailment incident [6]. - Critics argue that the merger could result in less attractive rail shipping options, as the merged entity may offload less profitable lines to smaller railroads [6]. Regulatory Scrutiny - The U.S. Surface Transportation Board will conduct a stringent review of the merger under a new standard established in 2001, requiring that it serves the public interest and enhances competition [8]. - The merger's potential to create a monopoly is a significant concern, with experts suggesting it could lead to only two major American railroads [9][10]. Competitive Landscape - A merged Union Pacific could control over 40% of the nation's freight, raising alarms about the implications for competition and pricing in the rail industry [10]. - Competitors like BNSF argue that the merger would lead to higher rates and fewer options for shippers, emphasizing that no customer has requested such a merger [11].