Binding Agreements, Not Fear, Should Guide the Union Pacific-Norfolk Southern Merger Debate
● Competitors have clear business reasons to see the Union Pacific-Norfolk Southern combination blocked. An American transcontinental railroad will raise the bar, forcing competitors to do better to keep pace.
● Opposition may be a coordinated effort amongst competitors with differing economic interests. Understanding competitor interests provides context for the public discussion surrounding the combination.
● The Surface Transportation Board will conduct a detailed evaluation of the facts, commitments and public benefits on record. The review process is designed to examine both the opportunities and concerns associated with the combination.
Concerns over a single coast-to-coast railroad are overstated. The longstanding operation of Canada's transcontinental railroads provides evidence that an end-to-end network can remain competitive while supporting national freight movement. A unified rail network will reduce interchange delays, improve service reliability and make rail more competitive with long-haul trucking — driving increased demand that’s projected to generate approximately 1,200 net new jobs within three years.
Speculation about job losses creates unnecessary anxiety in an industry where focus and situational awareness are critical to safety.
Stick to the facts: the publicly available Jobs-for-Life Agreement applies to all unionized employees, regardless of whether their union has entered into a specific agreement, and goes beyond traditional New York Dock Protection.
Railroad employees should evaluate the merger using the written agreements — rather than rhetoric from competing organizations — and review the negotiated protections to make informed decisions based on the documented facts.
Read the full SMART-TD article here.