Biggest rail union joins others in endorsing Union Pacific merger but
some still have reservations
[September 23, 2025] By
JOSH FUNK
OMAHA, Neb. (AP) — The nation's largest railroad union joined the list
of companies endorsing Union Pacific's proposed $85 billion acquisition
of Norfolk Southern Monday after securing promises to protect jobs, but
other unions and chemical makers that rely on the railroads are still
expressing concerns about the deal.
The SMART-TD union that represents conductors and other rail workers
said Union Pacific put CEO Jim Vena's promise not to lay off any of its
workers as a result of the merger in writing and promised to protect
their jobs throughout their careers. But the head of one of the next
biggest unions said he doesn't think this deal does nearly enough to
protect rail jobs, so he's not ready to support the merger that would
create the nation's first transcontinental railroad.
The union's endorsement comes just days after President Donald Trump
told reporters in the Oval Office that he deal sounds good to him, but
groups like the American Chemistry Council and the Rail Customer
Coalition have said they worry that allowing two of the six largest
railroads to merge will only hurt competition and lead to even higher
shipping rates.
The president of the Brotherhood of Maintenance of Way Employes Division
union said he believes his Teamsters have enough influence with the
White House that he may be able to change Trump's mind once he gets a
chance to explain some of the details and the tactics he believes the
railroad will use to eliminate jobs.
Rail unions divided over the merger
But SMART-TD President Jeremy Ferguson, who initially criticized the
merger and promised to oppose it, said Monday that he now believes it is
for the best after the railroad promised to protect jobs.
“For generations, railroaders have worried about what mergers might mean
for their jobs and whether or not they would be given the opportunity to
reach retirement on the rail," Ferguson said. “Today, we can say with
confidence that the biggest railroad and the biggest rail union in
America are breaking new ground. We are protecting jobs, protecting
families, and protecting the future of the U.S. supply chain.”
Tony Cardwell, president of the BMWED, said his union rejected similar
offer from Union Pacific a couple weeks ago because the railroad
wouldn't agree to protect workers if it decides to lease more of its
tracks to short-line railroads to handle the final deliveries as it has
already done in a couple locations. He said what good is a promise of a
job if it means either taking a pay cut to go to work for a smaller
railroad or moving across the country to keep a job with Union Pacific.
Cardwell said that until workers in those situations are protected
“We're not going to support it. In fact, we'll vehemently deny it. And
we feel like we have a close enough relationship right now with the
White House that we can have an impact on this.”
[to top of second column] |
 Trump's opinion of the deal could
prove crucial because he'll appoint two more Republican members of
the Surface Transportation Board that will ultimately decide whether
to approve the largest rail merger in history. Just last month,
Trump fired one of the two Democratic members of the board.
Some shippers express concerns
The president of the American Chemistry Council trade group, Chris
Jahn said he's worried that this proposed acquisition will follow
the pattern of problems that followed past rail mergers in the
1990s. Deliveries were delayed and disrupted for extended periods
after both the Union Pacific-Southern Pacific deal and the Conrail
acquisition.
“History has shown that mergers slash service and shift costs onto
customers — and the UP–NS merger risks more of the same," Jahn said.
“President Trump has made real progress rebuilding American
manufacturing. Let’s not let a monopoly undo it.”
But many companies back the plan
But more than 100 others have loudly endorsed the merger since it
was announced, including major shippers of consumer goods and a
major plastic maker who look forward to the prospect of faster
deliveries because Union Pacific would no longer have to hand over
shipments to Norfolk Southern in Chicago, which can easily add a day
or two.
“By knitting together a coast-to-coast rail network, Union Pacific
and Norfolk Southern are creating new efficiencies that will benefit
everyone – from logistics providers like us, to our customers, to
the end consumers,” said Adam Miller, CEO of Knight-Swift
Transportation. His company is a major shipper that trucks metal
goods to railroads and then pays them to haul the trailers across
the country before Knight-Swift picks them up again with its trucks
to deliver them.
Frank Vingerhoets said he believes combining the two railroads will
help his company's plastics reach their destinations more quickly
and efficiently.
“It means the plastic pellets and other products we handle can reach
key markets faster and more seamlessly than ever. In short, it’s a
win for shippers and for the entire supply chain," said Vingerhoets,
who is president of Katoen Natie North America.
This deal faces a long review
The STB review of the deal could take up to two years to complete.
The board established a high bar for major rail mergers after the
problems of the past, but Union Pacific and Norfolk Southern
executives have expressed confidence in their chances of gaining
approval.
“I am confident we will unlock new sources of growth for the country
and our industry, taking more trucks off taxpayer-funded highways,
serving new markets, and keeping more railroad jobs in America,"
said Vena, the Union Pacific CEO.
All contents © copyright 2025 Associated Press. All rights reserved |
