2 big unions balk at merger that would create first U.S. transcontinental railroad
Updated on: December 17, 2025 / 7:25 AM EST / CBS/AP
TL;DR
- Two major railroad unions, Brotherhood of Locomotive Engineers and Trainmen and Brotherhood of Maintenance of Way Employes Division, oppose the proposed $85 billion merger of Union Pacific and Norfolk Southern.
- Union concerns include increased safety risks, higher shipping rates, increased consumer prices, and potential job security issues.
- The proposed merger aims to create the nation's first transcontinental railroad, which supporters argue would improve efficiency and compete better with trucking.
- Opposition also comes from the American Chemistry Council, agricultural groups, and competitor railroad BNSF, who believe the merger would harm competition.
- The U.S. Surface Transportation Board will review the merger application to determine if it is in the public interest and enhances competition, using a stringent standard adopted after past problematic mergers.
- Concerns about safety are heightened due to Norfolk Southern's past derailment in East Palestine, Ohio.
- Shareholders overwhelmingly approved the combination, but the unions remain skeptical of promises regarding job preservation.
- Critics suggest the merger is a 'Wall Street play' for shareholders rather than a customer-driven initiative.