The BLET continues to keep a close eye on the proposed Union Pacific-Norfolk Southern merger, and whenever necessary, shine a public spotlight on risks associated with the merger. BLET has staunchly opposed the merger as it could harm workers, shippers, and the nation’s supply chain.
A major red flag was raised recently when Union Pacific CEO Jim Vena made alarming comments at an investor conference (see related article from Trains.com). Vena suggested that the Surface Transportation Board (STB) should rush its review of the merger and possibly ignore important public interest statutes. These self-serving statements come just weeks after Congress urged the STB to conduct a rigorous and thorough review of the proposed merger.
As background, while the STB accepted a second merger application filing (after rejecting the first) from UP-NS, it concluded that key aspects of the proposal “are unclear or underdeveloped and require supplementation at this stage of the proceeding.” As a result, the Board paused the proceeding pending receipt of extensive additional information from UP-NS. Vena is now saying that he expects STB to follow a statute that compels it to rule on the merger within 12 months of accepting an application, regardless of when the railroads actually provide the requested information.
“I follow the law, so if that’s what the statute says, then that’s what we’re going to do,” said Vena. “Otherwise, we don’t have to follow the statute, either, that talks about the public interest.”
BLET First Vice President Gary Best, who has been assigned by President Mark Wallace as the union’s lead representative on issues regarding the merger, sharply criticized the railroad CEO’s statement, particularly his position on the public interest statute.
“The public interest test is at the very heart of the STB’s merger review standard,” said Best. “Under federal law, UP and NS bear the burden of demonstrating the public benefits of a merger that could not be achieved by other means. No timeline changes what this merger is — a bad deal for America that must be rejected.”
Just weeks ago, the House Appropriations Committee reaffirmed the STB’s rigorous public interest standard in its FY2027 Transportation, Housing and Urban Development Appropriations bill, with bipartisan support. That report language directed the STB to conduct a rigorous and comprehensive review to ensure the proposed transaction delivers substantial public benefits, enhanced competition for rail shippers, and protections for the U.S. economy and consumers.
Locomotive photos by Cory Rusch, BLET Division 659