The Brotherhood of Locomotive Engineers and Trainmen (BLET) and the Brotherhood of Maintenance of Way Employees Division (BMWED) announced on December 16 and 17 2025 that they will oppose the $85 billion merger between Union Pacific (UP) and Norfolk Southern (NSC). The unions cited safety risks, higher shipping rates, and potential service disruptions as the primary reasons for their opposition.
The proposed merger would create the first transcontinental railroad in the United States, linking more than 50,000 route miles from the Pacific to the Atlantic. UP and NSC project annual synergies of roughly $2.75 billion and an enterprise value exceeding $250 billion, positioning the combined company to eliminate interchanges, streamline operations, and compete more effectively with trucking.
Union concerns center on job security and safety. The unions represent more than half of the combined UP‑NSC workforce, and they fear that the merger could lead to job transfers to short‑line railroads with lower wages. They also point to the 2023 East Palestine derailment as evidence that safety standards may be compromised under a larger, more complex organization.
Both CEOs have expressed optimism about the merger’s benefits. UP CEO Jim Vena said every union employee would have an opportunity in the merged entity, while NSC CEO Mark George echoed that sentiment, emphasizing that the company will preserve and potentially expand union jobs. They have also highlighted planned investments in safety technology and workforce training.
Regulatory approval will come from the Surface Transportation Board (STB). UP and NSC plan to file their application by January 29 2026, with a target closing date in early 2027. Shareholders of both railroads have overwhelmingly supported the deal, but the unions’ opposition could trigger additional scrutiny, labor disputes, and legal challenges that may delay or alter the transaction.
Financial context underscores the significance of the merger. NSC reported Q2 2025 revenue of $3.1 billion and an operating ratio of 62.2%, while UP posted Q3 2025 net income of $1.8 billion and an operating ratio of 59.2%. These figures illustrate the robust profitability of both companies and the potential upside of the combined entity, but also highlight the sensitivity of labor costs and safety investments to the merger’s outcome.
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