The nation’s largest rail labor union urged members of Congress to support a proposed $85 billion merger between Union Pacific and Norfolk Southern that would create the first coast-to-coast freight railroad in the United States.
The International Association of Sheet Metal, Air, Rail and Transportation Workers – Transportation Division (SMART-TD) sent a letter to lawmakers backing the deal. Union leaders said they evaluate railroad mergers based on how they impact workers’ jobs and long-term stability.
“SMART-TD evaluates every merger based on how it will affect our members’ jobs, livelihoods, and long-term stability,” SMART-TD President Jeremy Ferguson wrote.
Union Pacific and Norfolk Southern announced the proposed merger last July. Supporters argue that the deal would create a freight rail network spanning from the East Coast to the West Coast, modernize freight transportation, and improve the country’s supply chain.
President Donald Trump has also voiced support for the merger, saying it “sounds good.”
SMART-TD said negotiations with Union Pacific secured job protections for railroad workers.
“Following extensive negotiations, SMART-TD reached a historic agreement with Union Pacific that provides extraordinary job protections for employees in train and yardmaster service,” Ferguson wrote.
Ferguson said Union Pacific has committed to protecting jobs for employees at both railroads.
“Union Pacific has committed that employees of both Union Pacific and Norfolk Southern will not face involuntary furloughs, guaranteeing job protection for the duration of their careers,” Ferguson wrote.
Union leaders said the agreement gives stability to railroad workers and their families.
“These protections provide meaningful reassurance to railroad workers and their families in your state and across the country,” Ferguson wrote.
SMART-TD also said the merger could improve freight transportation nationwide.
“Beyond workforce stability, this merger presents significant opportunities to strengthen freight mobility nationwide,” Ferguson wrote. “The creation of the nation’s first coast-to-coast railroad would expand service options, improve network fluidity, reduce truck congestion on taxpayer funded highways, and support long term economic growth.”
Federal regulators must still review the proposal.
The Surface Transportation Board oversees railroad mergers and must decide whether the deal serves the public interest. The board rejected the companies’ first application as incomplete. Union Pacific and Norfolk Southern expect to refile the proposal by the end of April.
SMART-TD said it will support the merger during the review process.
“Because of the strong workforce protections secured, the stability they provide to thousands of railroad families, and the broader public benefits anticipated by the transaction, SMART-TD will be conveying its support for the merger before the Surface Transportation Board,” Ferguson wrote.
