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Analysis Warns of 'Disastrous Consequences' From $72 Billion Railway Megamerger
"The last 40 years of railroad consolidation clearly demonstrate how this merger could threaten public safety and harm shippers, workers, consumers, and the broader economy," said an economic analyst.
Oct 21, 2025
A merger between two of America's biggest railroad companies could have "disastrous consequences" for workers and consumers, according to a report out Monday.
In late July, labor unions raised alarm as Union Pacific Railroad announced a $72 billion deal to acquire Norfolk Southern Railway, which, if approved by the US Surface Transportation Board (STB), would make the new entity the largest railroad company in American history, controlling over 50,000 total miles of interstate rail.
The American Economic Liberties Project (AELP), an anti-monopoly think tank, provided more evidence for those concerns with its new analysis.
"A combined Union Pacific-Norfolk Southern will have disastrous consequences: less safe workers and communities, less competition, higher costs, and service disruptions," said one of the report's authors, AELP senior fellow Erik Peinert. "For good reason, there has never been an attempt at a consolidated transcontinental railroad system until now—a scale of railroad consolidation not even met by the railroad barons of the Gilded Age."
As the report explains, America's interstate rail system is dominated by four companies that operate as a pair of "regional duopolies." Norfolk Southern lines stretch across the Eastern US, along with those owned by CSX, while areas west of the Mississippi River are covered by Union Pacific and BNSF.
This already heavily consolidated system is the product of Congress' deregulation of railroads during the 1980s and 1990s, most notably through the replacement in 1995 of the more powerful Interstate Commerce Commission (ICC) with the STB, which has more limited authority to regulate mergers.
"Even by the very lax merger standards of the late 1990s and early 2000s, these combinations were recognized as mistakes with devastating outcomes," the report says. "Shippers reported a deterioration in service, fewer options with higher prices, and the loss of jobs, while workers lost jobs and those who didn't face strenuous working conditions."
Though STB's rules tightened in 2001, requiring mergers to "enhance" competition instead of simply not harming it, the damage was already done. Over the next two decades, the report noted that the top four major railroads came to haul 7% fewer loads while hiking freight rates twice as fast as inflation. This was due in large part to the fact that 50% of customers were now "captive," that is, they had access to only one rail line, compared to just 27% two decades prior.
Another megamerger, the report warns, would cause a "likely permanent loss of competitive rail services for shippers" in large sections of the country, specifically the Midwest, where Union Pacific and Norfolk Southern have overlapping lines.
The deal has been opposed by a consortium of shipping associations, including the Freight Rail Customer Alliance, the American Chemistry Council, and the National Industrial Transport League (NITL), which warned that it would slow down service and lead to price hikes.
Labor unions—including the Teamsters, the Transport Workers Union of America, and the Railroad Workers United—have also opposed the merger, citing the companies' histories of cutting costs by laying off employees and flouting safety standards.
"Historically, rail consolidation results in job loss, diminishing labor power in negotiating better working conditions and pay, resulting in staffing shortages that lead to burnout and increased safety risks for workers and the public," the report says. "And in general, consolidation results in stagnant and reduced wages for workers, as there are fewer buyers for labor and greater leverage for the consolidated companies."
There is also a risk that if the STB approves the merger, it could embolden the other half of the duopoly, CSX and BNSF, to merge as well, creating a national duopoly where "choice and competition would be lost."
In part due to the STB's more stringent rules, no interstate railroads have attempted to merge in the 21st century. However, the Trump administration seemed to give Union Pacific and Norfolk Southern a green light when—just as proceedings for the merger were beginning in late August—President Donald Trump fired Robert Primus, a Democratic member of the STB who had been an outspoken critic of railroad consolidation, which broke a 2-2 tie on the board between Democrats and Republicans.
At the beginning of October, Primus sued the Trump administration, which had not explained his firing other than that he "did not align with the president's America First agenda." After meeting with the CEO of Union Pacific in September, Trump said that the merger "sounds good."
"Our country's supply chain demands that the board be independent and transparent. Congress mandated it 138 years ago," Primus said upon filing the lawsuit. "Failure to do so will negatively affect the network: railroads, shippers, and rail labor alike, disrupting the supply chain and ultimately injecting instability into our nation's economy. This is dangerous, and wrong, and cannot be allowed to happen."
Railroad Workers United said that Primus "was removed not for inefficiency or malfeasance, but for daring to stand for fair competition and consumer interests, a principle too radical for the 'America First' cabal."
Ashley Nowicki, the report's other author and a policy analyst at the AELP, said that the firing of Primus, "who questioned rail consolidation and the railroad's substantial lobbying efforts, raises serious concerns about political interference."
"The last 40 years of railroad consolidation clearly demonstrate how this merger could threaten public safety and harm shippers, workers, consumers, and the broader economy," she continued. "The Surface Transportation Board must show it can operate independently and protect the public interest over Wall Street."
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Teamsters Rally in NYC After Amazon's 'Illegal' Firing of 150 Unionized Drivers
"Amazon would be nothing without its workers," said one worker. "We're the ones who power their profits. We're the ones who put our health and safety on the line every single day."
Sep 09, 2025
Teamsters and their supporters rallied outside a New York Amazon facility Monday in protest of what they said was an "illegal" firing of over 150 unionized drivers.
According to the union, the fired workers were employed by the delivery service provider Cornucopia, one of thousands of providers the company contracts with to deliver packages. These workers joined the Teamsters last year as the union went on strike in nine cities across the US.
Amazon claims these workers are not employees, but "contractors," and that firing them does not constitute illegal union busting.
The union, however, described this as "a phony shell game," saying that the contractors "wear Amazon uniforms, follow Amazon rules, and work off Amazon's routing software."
"Amazon calls the shots," read a statement from the union. "They are the employer and everyone knows it."
Last year, a National Labor Relations Board (NLRB) official in Los Angeles agreed that the company had engaged in unfair labor practices when it fired other unionized contractors in California, and determined that they did, in fact, count as employees of Amazon.
At the time, this ruling seemed to provide some clarity as Amazon workers fought to have their union recognized by the company, which has refused to recognize them for years.
This remained the case even after 2024, when more than 10,000 Amazon workers joined the Teamsters and the union launched the largest strike ever against the company right before the holidays, during which they demanded the company negotiate a fair contract that included wage increases and addressed workplace safety issues and illegal union busting.
Outside Amazon's DBK4 facility, which joined the strike last year, the Teamsters and their allies renewed calls for negotiation Monday.
"Amazon is breaking the law and we let the public know it," said Antonio Rosario, a Local 804 member and Teamster organizer.
Latrice Shadae Johnson, a Teamster who works at DBK4, added that "Amazon would be nothing without its workers."
"We're the ones who power their profits. We're the ones who put our health and safety on the line every single day. We're the ones who made them a $2 trillion corporation," said Johnson. "If Amazon thinks we're going to take this lying down, they have another thing coming. Our solidarity is only growing stronger."
That solidarity has come from many corners across New York City, with members of the City Central Labor Council, part of the AFL-CIO, taking part in the rally.
The Teamsters were also joined by democratic socialist state Sen. Kristen Gonzalez (D-59), who defeated the industry-backed cousin of former Queens US Rep. Joe Crowley in 2022.
"I've been in office three years, and every single year I've been right here in this spot because every single year Amazon has done union-busting," Gonzalez said to cheers from the crowd, "It's because they think they are above the law."
In 2024, Amazon joined a lawsuit filed by Elon Musk's company SpaceX, arguing that the NLRB, which is responsible for adjudicating labor rights violations, is unconstitutional because its members cannot be fired at will by the US President.
Just one week into his term, President Donald Trump fired NLRB member Gwynne Wilcox, effectively crippling the board's ability to rule on union-busting cases.
According to LaborLab, which publishes reports on corporate union busting, "Without a functioning board, companies like Amazon and Tesla can engage in union-busting tactics with impunity, facing no legal consequences for violating workers' rights."
The progressive state assemblyman Zohran Mamdani, currently the frontrunner to be New York City's next mayor, brought national attention to the Teamsters' plight on Monday.
"One of the most powerful corporations in the history of the world is firing unionized drivers in Queens," Mamdani wrote on X. "Solidarity with the Teamsters who rallied today against these unjust layoffs and to demand good faith negotiations."
Several Democratic members of the House of Representatives from New York, including Jerry Nadler and Alexandria Ocasio-Cortez, issued their own statements of solidarity, as did Republican Mike Lawler.
"Any company that denies workers the right to choose [collective] bargaining rights, including Amazon, should be confronted," Lawler said. "Unions are the backbone of this country. They helped build this country. And they damn well will ensure we have a strong and secure country moving forward."
Nadler added that he stood "with Amazon Teamsters as they rally in Queens today to hold Amazon accountable for its unlawful anti-union activity."
"Amazon," he said, "stop union busting and start bargaining a fair contract now!"
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'He's Selling Out': Teamsters President Faces Backlash for Cozying Up to GOP
One labor journalist called his comments regarding right-to-work "shameful" and "embarrassing."
Feb 20, 2025
International Brotherhood of Teamsters president Sean O'Brien faced backlash from labor movement voices on Wednesday for expressing his support for U.S. President Donald Trump's pick to lead the Department of Labor and for appearing to take a softer stance on so-called "right-to-work" laws—policies generally decried by organized labor because they allow employees to opt out of union expenses while working at a unionized establishment.
Labor journalist Alex Press called his comments regarding right-to-work "shameful" and "embarrassing."
Over the summer, Press spoke with rank-and-file Teamsters members about recent actions from O'Brien that signal a rightward shift, such as his decision to headline the first night of the 2024 Republican National Convention. "Some are undoubtedly thrilled," wrote Press, though "a growing number of members believe their president is offering a straightforward, if not always explicit, endorsement of a political party that wants to destroy them."
On Wednesday, O'Brien attended the Senate confirmation hearing of Oregon Republican Lori Chavez-DeRemer, Trump's labor pick, during which Chavez-DeRemer said she would support Trump's agenda, according to The New York Times. Chavez-DeRemer also told senators that she no longer supports a section of the Protecting the Right to Organize (PRO) Act—sweeping Democratic labor legislation that was introduced in Congress but never passed—which would have weakened state right-to-work laws.
Speaking later Wednesday on Fox News, O'Brien said of Chavez-DeRemer, "Not only do we support her appointment, we are going to the mat to make sure that she gets confirmed."
When asked about Chavez-DeRemer's stance on the right-to-work section of the PRO Act, O'Brien said that he is working with senators such as Sen. Josh Hawley (R-Mo.) to come up with a version of the PRO Act that "may not include that."
"That's the beauty of having conversations with people from the other side, where you can collaborate and actually find out what works for that state, what doesn't work for it—but more importantly, what's going to work for the American worker," O'Brien said.
A clip of these comments was reposted by the National Right to Work Committee, a group dedicated to "combating the evils of compulsory unionism," according to its website.
"The Teamsters union is as decentralized as the country. Like the median voter, most Teamsters aren't closely following what Sean O'Brien is saying," wrote labor journalist Luis Feliz Leon in response. "The press should ensure they know how he's selling out members to cozy up to anti-worker politicos and bolstering the power of bosses."
In the same Fox News interview, O'Brien also said the Teamsters do not want to see anyone losing their job, but that "[Trump] thinks he's within his right," when asked about the personnel-slashing Department of Government Efficiency and the Trump administration's widely decried deferred resignation program for nearly all federal employees. Multiple federal employees unions are currently battling the Trump administration in court over its actions targeting federal workers and federal agencies.
"What a shame. Teamsters deserve better than this," wrote Rep. Alexandria Ocasio-Cortez (D-N.Y.) in response on Bluesky.
Another labor journalist, Kim Kelly, denounced a video posted Wednesday by Sen. Markwayne Mullin (R-Okla.)—whom O'Brien nearly physically fought during a Senate hearing last year—in which Mullin and O'Brien chum it up and both express support for Chavez-DeRemer.
Also in response to the video, an observer on X with username katy, who indicates they are a part UFCW Local 371, wrote, "class traitor."
"I was raised in a Teamsters household, survived because of union benefits, and still do. I'd rather starve than lick a boot," katy wrote. "We're the union."
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