Largest rail union backs Union Pacific–Norfolk Southern merger, but concerns linger

The SMART-TD union, which represents conductors and other rail workers, endorsed Union Pacific's proposed $85 billion acquisition of Norfolk Southern on Monday after obtaining written assurances that workers would not be laid off and would have job protections throughout their careers. The endorsement marks a significant milestone in a deal that would create the first transcontinental rail network and has drawn scrutiny from other unions, chemical makers and shippers concerned about competition and pricing.

Tony Cardwell, president of the Brotherhood of Maintenance of Way Employes Division (BMWED), one of the next-largest unions, signaled reservations even as he acknowledged the broader labor landscape. BMWED rejected a similar offer earlier because Union Pacific would not guarantee protections if it leases more of its tracks to short-line railroads to handle final deliveries, and Cardwell said that until workers in those situations are protected, the union would not support the merger. The union’s stance illustrates the tension within organized labor over how job protections would be extended across a potentially larger network.

In Washington, the White House has signaled that regulatory outcomes could hinge on the political dynamic surrounding the deal. President Donald Trump has said in the Oval Office that the merger sounds good to him, and his administration will shape the regulatory board that will review the merger. Trump recently fired one of the Surface Transportation Board’s two Democratic members, a move critics say could affect the board’s balance as it weighs the proposal.

Industry groups have voiced concerns about reduced competition and higher shipping costs if two of the six largest railroads merge. The American Chemistry Council, for example, cautioned that past rail consolidations in the 1990s led to delays and service slippage. Council President Chris Jahn said the UP–NS deal could follow that pattern unless safeguards are put in place, emphasizing that history shows mergers can shift costs onto customers. Jahn added that Trump’s broader effort to rebuild manufacturing progress should not be undone by a monopoly in the rail sector.

Despite lingering questions from some stakeholders, more than 100 other organizations and companies have endorsed the scale of the deal. Knight-Swift Transportation, a major shipper that moves metal goods and then pays railroads to haul trailers before Knight-Swift picks up again with its trucking network, said the combined network could deliver faster, more efficient service for its customers. Adam Miller, Knight-Swift’s CEO, stressed that knitting Union Pacific and Norfolk Southern into a coast-to-coast network would yield tangible benefits for logistics providers and end users alike. Frank Vingerhoets, president of Katoen Natie North America, echoed the sentiment, noting that faster, more seamless movement of plastics and other products would improve markets and supply chains.

Still, observers warn that the regulatory review could take years. The Surface Transportation Board has set a high bar for major rail mergers in the wake of past disruptions, and the two-year review window cited by industry officials and regulators could stretch beyond initial expectations. Union Pacific executives, including Chief Executive Jim Vena, have expressed confidence that the transaction will unlock new sources of growth for the country and the industry, keep more railroad jobs in America and reduce truck traffic on highways as shipments shift to rail.

Vena has framed the merger as a pathway to a more efficient, resilient supply chain, arguing that the integrated network would deliver tangible benefits for shippers and end consumers while strengthening the U.S. rail system. As the regulatory process unfolds, stakeholders across labor, industry and government will weigh job protections, pricing, service reliability and broader competition in deciding whether the nation’s largest rail merger in history can move forward.