As the largest rail labor group in the U.S., SMART Transportation Division (SMART-TD) is closely watching the proposed merger between Union Pacific (UP) and Norfolk Southern (NS). This potential merger raises serious concerns about worker safety, service quality, and the future of the freight rail industry.
Freight Rail Challenges
Class I railroads, like UP and NS, are facing ongoing service issues, partly due to a practice called Precision Scheduled Railroading (PSR). This approach, while aiming for efficiency, often leads to delays and operational struggles. Recent decisions by the Surface Transportation Board (STB) may only complicate matters further. Merging two large companies with entrenched PSR methods could worsen these challenges instead of solving them.
Worker Safety at Risk
Union Pacific has a notable safety problem. Recent data shows that it leads the industry in accidents and injuries. This raises alarms about a culture at UP that prioritizes profits over safety. On the other hand, Norfolk Southern has been focusing on better safety practices and labor relations. They’ve pledged not to lay off conductors or engineers during tough economic times, showing a commitment to their workforce.
Labor Relations Matter
UP has a history of poor labor relations. Disciplinary practices can feel harsh, with too many employees facing retaliation for minor issues. They even misled the Federal Railroad Administration during a safety audit. In contrast, NS has taken strides to engage constructively with its workers. Combining these two companies could undo the progress NS has made in labor relations.
Infrastructure and Community Impact
Union Pacific has been leasing parts of its network to smaller, non-union railroads. This trend raises questions about their commitment to providing quality service. A coast-to-coast operation could mean less focus on meeting the specific needs of local businesses. This shift may endanger the quality of service that shippers depend on, making it harder for American manufacturers to stay competitive.
Merger Implications for Shippers
UP’s strategy often overlooks crucial local service in favor of long-haul routes. This shift can limit options for shippers who require personalized service. If the merger happens, it could trigger a wave of further consolidations in the rail system, potentially leading to higher costs and fewer choices for businesses.
Labor Practices
UP hasn’t been shy about furloughing workers, even when traffic is stable. This shows a lack of investment in maintaining a skilled workforce. In contrast, Norfolk Southern emphasizes workforce development, which highlights potential differences in labor approaches if the merger goes through.
Conclusion
SMART-TD is calling for a thorough review of this merger by regulatory bodies. It’s crucial to consider the broader implications for workers, safety, and the rail system as a whole. We plan to oppose this merger when it is presented to the Surface Transportation Board.
For more insights on rail safety and labor practices, refer to the full report from the Surface Transportation Board and other industry studies.
This merger is not just a business deal; it could reshape the landscape of freight rail in America.
