Major Rail Merger Loses Key Union Support Amid Safety and Competition Concerns

The proposed $85 billion merger between Union Pacific and Norfolk Southern, which would create the nation’s first transcontinental railroad, is facing growing opposition after two major labor unions withdrew their support. The Brotherhood of Locomotive Engineers and Trainmen and the Brotherhood of Maintenance of Way Employees Division—together representing more than half of the railroads’ workforce—announced they can no longer back the deal, citing concerns it could threaten worker safety and jobs, reduce competition, and ultimately drive up shipping costs and consumer prices.

The unions now join a widening group of critics that includes chemical manufacturers, agricultural organizations, and rival railroad BNSF, all of whom argue the merger could harm competition across the freight rail industry. While the deal continues to have support from the nation’s largest rail union, many individual shippers, and President Donald Trump, union leaders say assurances from Union Pacific leadership about job protections lack sufficient detail and enforceability. They also warn the merger could result in job relocations, the sale of rail lines to lower-paying short-line operators, and fewer service options for rural communities and businesses.

Union Pacific maintains that all union employees will retain their jobs at the time of the merger, though company officials acknowledge workforce numbers could decline over time through attrition. Safety is another major concern, with union leaders pointing out differences in safety reforms between the two railroads following recent high-profile derailments.

The proposal now heads toward review by the U.S. Surface Transportation Board, which will apply strict post-2001 merger standards requiring proof that the deal serves the public interest and enhances competition. Regulators, industry experts, and competitors are expected to closely scrutinize the merger, which could reshape the U.S. rail industry and place more than 40 percent of the nation’s freight traffic under a single railroad’s control.