The largest rail route in the US is a warning of the major transport of the Labor Association “Meltdown”, if the labor concerns and conditions are not met in the proposed merger. Sangh Pacific And Norfolk Southern,
MergerIt was declared last week, the railway sector will be the largest procurement ever, and will manufacture the country’s first coast-to-coast freight railway operator, which will mainly cover Eastern America with a network of Norfolk to Union Pacific in western America.
Smart Transportation Division (Smart-TD) has already said its intention To petition the government to block the dealUnion Pacific’s safety records amidst their primary concerns.
Smart-TD president Jeremy Ferguson told CNBC, “Without labor on the table, the management has made a very serious mistake.” “They need our input. Our members are professionals, whether it is a yard masters, whether it is a conductor, engineer or in foreman yard. We know how to transfer freight.
The union represents around 125,000 active and retired railroads, buses and large -scale transit workers, and is part of the larger smart union that all represents more than 200,000 workers.
Ferguson cited previous deals in the railway sector to give voice to his concerns, such as when CSX And Norfolk Southern acquired and divided Connarril in 1997, and a uniform time -bound association of Southern Pacific.
Ferguson said about the Sangh Pacific-South Pacific transaction, “That day, there was a large-scale recession.” He said, “We have seen something with Burlington North and Santa FE. So I have seen my part of my recession,” he said, referring to the combination of two rails which were eventually acquired after his consolidation by Warren Buffett, “he said. Berkshire HathawayAs BNSF.
Union Pacific’s number 4014 makes its way in the I-45 in front of Houston Skyline on Friday, October 4, 2024 at Big Boy Houston.
Houston Chronicle/HRST Newspapers | Hresht Newspapers | Getty images
The company spokesperson said, “Union Pacific stands on its record, and it is clear. Union Pacific-Norfoch Southern merger, when approved, will benefit the US, which will support the US more efficiently revaluation and growing products,” a company spokesman said, “We have a history of technology changes, as we have a history to apply in our 32,000 milestones without any problem Natcontrol. “
On an analyst call hosted by Union Pacific last week to discuss the deal last week, CEO Jim Vena told analysts that joint companies will provide rapid, more comprehensive goods service for US shippers and grow as it makes better competition in the market.
Transport and Logistics Infrastructure Investment Banking Team Managing Director and Lead Craig Decker at Brown Gibbens Lang & Company said that as a result of the merger, the Major translogged, warehousing and container/chassis management may have the ability to displace or abolish the major translogged, warehousing points.
He said that the implication of the deal “various partners in the supply chain, including trucking companies, whose relations and networks have been configured and their current railway relations.”
According to Decker, this merger is a merger surface transportation board, historically sinking on the merger of the US’s largest rail network, Class 1 Freight Rail.
“But an important factor that is not to be exempted is President Trump’s ability to influence members of STB,” Decker said. “In normal circumstances, I would say that STB will reject the deal as was done with CP/CSX, but seeing President Trump’s desire to deal with incredibly difficult negotiations and their success is so far, their influence becomes a wildcard which will decide whether this deal is finally approved,” said.
On July 30, STB posted a formal notice regarding merger on its website. Under the Rules of STB merger, the railroad has a time timeline to submit a merger application of three to six months. It states that Union Pacific and Norfolk Southaran have planned to file their application on or before January 29, 2026. During the review process, the STB will open public comments on the deal.
Ferguson said that the Union will go in front of the board and complete the matter that the deal is not good to safely pursue commerce and transport in the US.
“First, we are going to talk about safety for all employees,” he said. He said, “This is going to be very important. The second shippers will be, because without our shippers, we will not have a job, so we are very protective of them,” he said.
Ferguson stated that creating a new transcontinental rail network would expand well to two freight transactions for jobs for jobs, and was potentially killed in the middle of the country. While he said that there is no way to put a number on the loss of a potential job, many jobs in the major transport hub across the US can end at risk if the deal is approved and eventually leads to more consolidation in the rail sector. “Where both (rail) meet, this would be the most delicate point,” he said. And then, if other major cargo rail networks play in the later M&A, then transport workers may also be at risk at major locations from Chicago to St. Louis, Memphis and New Orleans, he also said.
Watch the full video above why the nation’s largest rail union has come out against the freight mega-merger.
