Statement from SMART-TD on the Proposed Union Pacific and Norfolk Southern Merger

As the largest rail labor organization in the United States, SMART Transportation Division (SMART-TD) remains deeply engaged in evaluating the implications of the proposed merger between Union Pacific (UP) and Norfolk Southern (NS). We approach this development with measured skepticism rooted in the real-world impact such consolidation could have on rail workers, safety, service quality, and the long-term health of the freight rail industry.

Freight Rail Service Quality at Risk

Class I railroads continue to grapple with persistent service challenges as a result of Precision Scheduled Railroading (PSR). The Surface Transportation Board’s (STB) recent decision on reciprocal switching could further strain operational fluidity and responsiveness. Merging two large carriers, particularly one with an entrenched PSR framework, risks exacerbating these issues, not improving them.

Worker Safety and Operational Culture

Under its current leadership, Union Pacific has developed a troubling safety record. Publicly available data from recent years reveals UP leads the industry in accidents, incidents, injuries, and fatalities. This trend reflects a broader corporate culture that, in our view, prioritizes aggressive operating ratios over worker and public safety. In stark contrast, Norfolk Southern in recent years has moved toward more progressive labor and operational policies that prioritize training and transparency and have publicly pledged not to furlough conductors or engineers during economic slowdowns.

Labor Relations and Discipline Practices

UP’s approach to labor engagement and disciplinary procedures reflects a pattern of disengagement and hostility. Disciplinary actions at UP have reached excessive levels, raising serious concerns about harassment and retaliatory behavior. Furthermore, UP was found to have misled the Federal Railroad Administration during a recent safety audit. This is not the foundation upon which a safe, efficient, and equitable national rail system can be built.

While NS has made efforts to improve its labor relations practices, including more transparent negotiations and a constructive stance on workforce retention, folding it into a UP-led structure raises the risk of reversing these advances.

Threats to Infrastructure Access and Local Service

Union Pacific has demonstrated an alarming willingness to lease yards and even mainline trackage to non-union Class II and Class III railroads in pursuit of short-term financial gains. These actions reveal a pattern of divestment that is incompatible with a sustainable, service- oriented freight rail system. The prospect of UP operating a coast-to-coast network intensifies concerns that the company will continue to lose focus on shippers’ needs in favor of operational centralization and financial engineering.

By leasing off infrastructure crucial to servicing industries (especially in the first-mile/last-mile context) UP not only threatens the availability of work for our trained, FRA-certified union members, but also endangers the safety and efficiency that shippers depend on to keep their operations running. This abdication of their responsibilities under the common carrier agreement may very well lead to the degradation of localized service. It would be a direct blow to the competitive viability of American manufacturers and suppliers who rely on high-quality rail connectivity to reach markets.

Impact on Shippers and Network Access

UP’s strategy of leasing off properties and focusing heavily on long-haul operations suggests a departure from vital first-mile/last-mile service. Shippers reliant on tailored, local service could see a decline in responsiveness and flexibility, especially as terminal rationalization and network simplification increase.

Moreover, such a merger would encourage further consolidation across the Class I rail system, triggering another wave of transcontinental mergers creating a duopoly. Both history and logic suggest this would drive higher rates, fewer service options, and diminished competition.

Shippers and communities deserve more than a monopoly in disguise.

Labor Practices in Flux

UP has repeatedly shown a willingness to furlough or lay off craft workers (conductors, engineers, and others) even during periods of stable or growing traffic. This practice undercuts workforce stability and signals a disregard for long-term investment in skilled rail labor. By contrast, NS leadership has committed publicly to retaining and developing its workforce during economic slowdowns. This is a difference that highlights how dramatically labor strategies could diverge under a combined system.

Conclusion

SMART-TD urges all relevant regulatory bodies, elected officials, and stakeholders to conduct a rigorous, transparent, and labor-informed review of this proposed merger. Our labor organization has every intention to oppose this merger when it comes before the Surface Transportation Board for approval.

Media Inquiries

If you are a member of the press and would like to speak to someone in our office directly on this topic, please reach out to Dan Banks, who oversees the SMART-TD Public Relations Department. He can be reached at dbanks@smart-union.org or on his cell phone at (330) 322-5949.