{"id":334971,"date":"2025-12-22T20:25:11","date_gmt":"2025-12-22T10:25:11","guid":{"rendered":"https:\/\/www.railfreight.com\/?p=68265"},"modified":"2025-12-22T20:25:11","modified_gmt":"2025-12-22T10:25:11","slug":"american-unions-oppose-mega-merger-competitiveness-and-jobs-in-danger","status":"publish","type":"post","link":"https:\/\/www.vibewire.com.au\/?p=334971","title":{"rendered":"American unions oppose mega-merger: \u2018competitiveness and jobs in danger\u2019"},"content":{"rendered":"

The USA may see a game-changing rail merger take place in the near future. Union Pacific (UP) aspires to acquire Norfolk Southern (NS), which would unite two rail networks in one new transcontinental system. Full speed ahead, the operators are thinking. \u201cNot so fast\u201d, say trade unions.<\/strong>
\n<\/span>The 85 billion dollar deal should lead to a 250-billion dollar rail company that, for the first time ever, connects the two coasts of the USA under a single corporate banner. Both rail operators have submitted documents to the federal transport department for regulatory review the past week.<\/p>\n

When Union Pacific announced the takeover in late July, it said that the move would help the US supply chains and the economy, strengthen domestic manufacturing and position railways to move forward technological innovations that would foster freight competition.<\/p>\n

If only everyone would see it that way, this deal would be a lot easier to sell for UP and NS. After months of deliberation, three trade unions have spoken out against the acquisition, citing concerns about job security and competitiveness.<\/p>\n

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\n\"Union
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\n\"Norfolk
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The rail networks of Union Pacific (left) and Norfolk Southern (right) span much of the United States. Images: \u00a9 Wikimedia Commons<\/figcaption><\/figure>\n

From competition to monopoly<\/h2>\n

Some 50 years ago, the US counted around 40 large rail freight operators. Now, the country only counts six, stifling competition. The UP-NS merger would be a \u201cde facto monopoly\u201d, say trade unions BLET (Brotherhood of Locomotive Engineers and Trainmen) and BMWED (Brotherhood of Maintenance of Way Employes).<\/p>\n

\u201cThis debt-ridden tie-up won\u2019t make rail more competitive with trucks as merger proponents claim\u201d, said BLET President Mark Wallace. \u201cWe believe this transcontinental railroad will make shipping by rail less attractive as the merged carrier passes off rail lines that serve small towns, factories and farms to short line railroads while running miles-long slow-moving trains on the main line. For rail customers it will be a choice between \u2018Hell or the highway.\u201d<\/p>\n

Earlier, chemical companies voiced similar opposition to the acquisition. They argued that the reduction of rail freight operators would turn shippers into \u201ccaptives\u201d with little to no choice.<\/p>\n