Union Pacific’s $85 Billion Power Grab: Why Workers Fear a Rail Industry Meltdown

 

Union Pacific’s $85 Billion Power Grab: Why Workers Fear a Rail Industry Meltdown

Railroad Mega-Merger Sparks Outrage: Workers Warn of Job Cuts, Rising Costs & Safety Risks

The proposed $85 billion mega-merger between Union Pacific and Norfolk Southern—two of the largest railroad companies in the US—is facing fierce pushback from workers and unions. Critics warn the deal would slash jobs, raise consumer costs, and heighten the risk of catastrophic train disasters.

If approved by the Surface Transportation Board, the merger would create the nation’s first transcontinental railroad network. But with the haunting memory of the East Palestine, Ohio derailment—which released toxic chemicals just two years ago—union leaders argue the deal could dangerously amplify risks.

The entirety of the workers is against the merger,” declared John Samuelsen, president of the Transport Workers Union (TWU). He cautioned that bigger railroad corporations mean more power, fewer workers, and greater danger:

“Anything that empowers freight rail carriers only makes them more ruthless. If they’re twice as big, they’ll be twice as difficult to deal with—and they’ll slash headcount.”

Profits Over People?

Union Pacific executives boast the deal would unlock a so-called “synergy opportunity” of $2.75 billion annually, but workers say such savings can only come from massive workforce reductions—a long-standing issue in the industry.

Samuelsen likened today’s railroad bosses to the infamous robber barons of the 1880s, calling them “extremely powerful and anti-worker.”

The Smart Transportation Division, the largest rail labor organization in the US, also opposes the merger, citing Union Pacific’s poor safety record and anti-labor practices.

Union Pacific’s $85 Billion Power Grab: Why Workers Fear a Rail Industry Meltdown

Shrinking Workforce, Growing Concerns

Since 1980, the number of Class I railroads has plummeted from 39 to just six, with consolidation accelerating industry dominance. The railroad workforce has also collapsed—from over 450,000 workers in 1980 to just 122,000 in 2024.

None of these mergers have ever been good for workers, shippers, or consumers,” argued Matt Weaver, a veteran railroad worker. “It’s like playing Monopoly. Companies get bigger, jobs disappear, and prices go up.

Weaver also highlighted the toll on families, saying workers may be forced to live 2,000 miles away from home to keep their jobs. “How do you raise a family when you’re never there?” he asked.

Communities at Risk

Retired BNSF worker Jeff Kurtz warned the merger would give carriers even more unchecked power. He recalled how the 1996 Burlington Northern-Santa Fe merger wiped out union contract benefits and disrupted small-town communities.

“Right now, long trains already block crossings and divide towns. With this merger, they’ll relocate terminals and uproot families, leaving communities with no say,” Kurtz said.

Nick Wurst, general secretary of Railroad Workers United, echoed fears that executives will “trim the fat,” cutting jobs not just for union workers but also for managers. He added, “This will give them massive power—over customers, workers, and even Washington.”

Industry Groups Push Back

Even shipper associations oppose the deal. Seven industry groups—including the American Chemistry Council and the Freight Rail Customer Alliance—argue that rail companies already hold too much market power and further consolidation would make things worse.

Union Pacific’s Defense

While Norfolk Southern declined to comment, Union Pacific insists the merger would be “a win for the US economy, the workforce, and customers.” The company claims it will strengthen American manufacturing, create resilient supply chains, and preserve union jobs.

But for thousands of railroad workers, the message is clear:

Bigger railroads mean fewer jobs, higher risks, and communities left behind.


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"Union Pacific’s $85B bid to buy Norfolk Southern sparks backlash as workers warn of job cuts, rising costs, and safety risks for US communities."

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