Union Pacific’s $85B Merger with Norfolk Southern Gains Key Union Support

The largest U.S. railroad union, SMART-TD, has announced its support for Union Pacific’s $85 billion acquisition of Norfolk Southern, a historic deal that would create the nation’s first coast-to-coast freight rail network. The endorsement represents a major shift, as SMART-TD initially opposed the merger over job security and competition concerns.

SMART-TD, representing about 230,000 workers, confirmed that members in train and yardmaster services will have lifetime job protection under the agreement. “For generations, railroaders have worried about what mergers might mean for their jobs. Today, we can say with confidence that the biggest railroad and the biggest rail union in America are breaking new ground,” said SMART-TD President Jeremy Ferguson.

The merger has also gained political backing. President Donald Trump voiced support after meeting Union Pacific CEO Jim Vena at the White House, signaling potential regulatory approval under his administration. Industry experts note that the deal might have faced tougher scrutiny under President Biden, who emphasized antitrust concerns in the rail sector.

If approved, the Union Pacific–Norfolk Southern merger would mark the largest railroad acquisition in U.S. history, providing shippers broader access and pricing power across critical domestic corridors. The move intensifies pressure on rivals, particularly CSX Corp and Berkshire Hathaway-owned BNSF, both caught off guard by the rapid momentum. Analysts suggest CSX may be forced to reassess its strategy to stay competitive.

Union Pacific and Norfolk Southern are expected to formally file their merger application with the Surface Transportation Board by late October or early 2026. The board, which oversees rail competition, has historically taken a cautious approach to large consolidations. If successful, the merger could reshape U.S. rail infrastructure and competitive dynamics for decades to come.