Here we go — again. This week, Union Pacific and Norfolk Southern filed a third round of merger application materials with the Surface Transportation Board (STB) in their attempt to merge the two Class I railroads. Back in May, the two railroads were ordered by STB to provide supplemental information by July 27 because there were so many holes in their first two merger applications.
“UP’s actions keep confirming our assessment that this merger is bad for workers, customers, and our communities,” said BLET National President Mark Wallace, who also serves as President of the Teamsters Rail Conference. The Teamsters represent the majority of the unionized workforce at what would be the combined railroad.
The railroads were also forced by BLET and other unions to disclose data showing how the merger would impact their workers. A preliminary analysis by Axios, a political and business news website, shows that the railroads project 1,000+ job cuts and 500+ transfers as a result of the deal. It’s unclear where or how far workers would be transferred.
The BLET and Teamsters Rail Conference are founding members of the Stop the Rail Merger Coalition, which represents shippers, railroads, labor unions, consumers, and public policy groups. The Coalition has led the way in highlighting the dangers of the proposed merger. For more information, please read this press release from the Stop The Rail Merger coalition.
Members of Congress are also voicing concerns about the risks the merger poses to America’s economy and supply chain. Earlier this month, U.S. Senator Cory Booker, joined by 22 Senate colleagues, urged the STB to conduct a rigorous and independent review of proposed merger. In a letter to the STB, the senators warned that the unprecedented merger could eliminate rail jobs, raise costs for shippers and consumers, reduce competitive options, create supply-chain bottlenecks, and undermine rail safety and service.
Locomotive photos by Cory Rusch, BLET Division 659