$85 Billion Rail Merger Sparks Fierce Opposition from Nation Largest Union

The largest rail labor union in the United States, SMART Transportation Division (SMART-TD), has announced it will formally oppose the proposed $85 billion merger between freight giants Union Pacific and Norfolk Southern. The deal, if approved, would create the country’s first coast-to-coast freight rail network.

Speaking to CNBC, SMART-TD — which represents about 125,000 active and retired workers — confirmed its plan to present its case before the Surface Transportation Board (STB), the federal agency responsible for regulating freight rail and other surface transportation. The union will voice its concerns during the board’s upcoming public comment period.

In a strongly worded statement, SMART-TD warned all stakeholders to approach the deal with “measured skepticism,” raising alarm over Union Pacific’s safety practices and labor record. The union, currently in negotiations with Union Pacific over a new labor contract, claims the company has developed “a troubling safety record” under its current leadership.

“Public data from recent years shows Union Pacific leads the industry in accidents, injuries, and fatalities,” the union said. “This points to a corporate culture focused more on operational ratios than on worker and public safety.”

SMART-TD further accused Union Pacific of engaging in “excessive levels of harassment and retaliation” against its workforce.

Union Pacific has not issued a comment in response to these allegations.

If finalized, the merger would mark the largest acquisition in U.S. rail history. It would combine Union Pacific’s network in the western U.S. with Norfolk Southern presence in the east, effectively creating a unified freight corridor from coast to coast.

While sharply critical of Union Pacific, SMART-TD acknowledged Norfolk Southern more progressive stance on labor in recent years. The union praised the company’s approach to training, transparency, and its commitment to avoid furloughing staff during economic downturns.

In addition to SMART-TD’s opposition, another major union — the Brotherhood of Locomotive Engineers and Trainmen (BLET), which represents 32,000 workers — has raised serious concerns, though it has not yet taken a formal position on the merger.

In a separate development, BLET recently addressed a letter to former President Donald Trump, urging action over the employment of Mexican nationals by U.S. freight rail companies, including Union Pacific, at the southern border. The letter accused these companies of replacing American locomotive engineers with foreign workers, and warned of national security implications.

BLET cited a troubling incident involving Ferromex — Union Pacific’s prospective partner — where a Mexican employee was arrested for smuggling migrants into the U.S. via train.

“This is not just about jobs; it’s about national security,” BLET President Mark Wallace wrote. “American train crews play a crucial role in border security by offering a vital checkpoint before trains enter U.S. territory.”

The union has asked Trump to direct the Department of Transportation to bar foreign crews from operating trains in the U.S. unless they are American citizens or lawful residents. They also want English to be mandated as the official working language across the rail industry — a rule recently enforced in trucking.

The Department of Transportation has yet to respond to the request.

Meanwhile, the Teamsters Rail Conference — which includes both the BLET and the Brotherhood of Maintenance of Way Employees Division (BMWED) — issued a cautious statement on Tuesday. It said it would withhold judgment on the merger until it had met with leadership from both rail carriers to assess the potential impact on operations, employment, safety, and public service.

As federal scrutiny over the merger intensifies, all eyes are now on the Surface Transportation Board, which holds the authority to approve or reject the historic deal.