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Union Pacific announces $85 billion Norfolk Southern buy out

Union Pacific said all union members will keep their jobs. 

John Mansker, Director of Railroad Services

Boilermaker members, who are shopcraft employees of both Union Pacific and Norfolk Southern, are unlikely to lose their jobs if the two companies merge.

Union Pacific has unveiled plans for an $85 billion acquisition of Norfolk Southern that, if approved, would create the first U.S. transcontinental railroad. According to a Union Pacific press release, the combined network would cover more than 50,000 miles across 43 states and connect to around 100 ports, uniting Union Pacific’s western reach with Norfolk Southern’s eastern operations.

The railroads say the deal would streamline supply chains by eliminating handoffs at major interchange hubs such as Chicago, potentially cutting transit times by up to two days. Supporters assert the merger would make rail freight more competitive with trucking and improve service in regions like the Ohio Valley and the Mississippi River watershed.

The trade association The American Fuel and Petrochemical Manufacturers warns the deal could worsen service issues for refiners and chemical shippers, while some labor unions, including SMART Transportation Division, have raised alarms over potential job cuts, safety and worker rights—issues in which the Boilermakers union is always concerned.

Director of Railroad Services John Mansker has confidence that the union’s railroad employees won’t lose their jobs. “I don’t think it will affect any of our members,” Mansker said. “Union Pacific said all union members will keep their jobs.”

Mansker said Boilermaker members are welders and shopcraft workers. And while some may have to change shops if the Union Pacific buy out goes through, he believes the railroad’s promise to keep all union workers employed.

“There are several places—like Chicago—where both the UP and Norfolk Southern have shops. They’re going to pick the better of the two shops and use that. They will move the people over to the other shop.”

Both Union Pacific and Norfolk Southern have stated that nothing would change for the next 18 to 24 months. If the acquisition is approved, there will be a waiting period for public comment during which all the unions affected will have a say.

The Surface Transportation Board, a federal agency charged with the economic regulation of various modes of surface transportation, requires mergers and acquisitions demonstrate both public benefits and preserved competition. If approved, the merger would shrink the number of major freight carriers from six to five.

Union Pacific and Norfolk Southern plan to submit their application within six months and hope to finalize the acquisition by early 2027.