Union Pacific, Norfork Southern deal faces fresh pushback from Teamsters union

The Teamsters union said on Wednesday it opposes the proposed merger between U.S. freight railroads Union Pacific and Norfolk Southern.

Union presidents representing nearly 20,000 workers at both the railroads said in a joint statement that they would not support any deal that fails to protect workers' lives and livelihoods.

The proposed merger, which aims to form the United States' first coast-to-coast railroad and allow for faster shipping by cutting handoffs and delays, has faced criticism from unions and rival railroads since its announcement.

Teamsters said that executives at both railroads failed to commit to protecting jobs or addressing other concerns.

"It's time for Union Pacific and Norfolk Southern to get serious and do right by our members. Until they do, the Teamsters will do everything in our power to block this harmful merger," it said.

Union Pacific and Norfolk Southern shareholders in November approved to merge both railroads, with over 99% voting in favor of the $85 billion deal.

Both railroads have yet to submit an application for approval to the Surface Transportation Board, and are expected to file this week. In October, Senators John Hoeven and Amy Klobuchar led a bipartisan effort urging the STB to closely scrutinize the proposed merger over concerns about long-term competition, including impacts on agricultural producers.

Berkshire Hathaway-owned BNSF Railway has also voiced its strong opposition to the merger, urging shippers, labor and other stakeholders to voice their disagreement to the Surface Transportation Board.

The United States' largest railroad union, SMART-TD, endorsed the proposed merger in September after securing job-protection guarantees for its members, reversing its stance from July, when it opposed the deal over concerns about job security, competition and access to infrastructure.

"Every employee with a union job at the time of the merger will continue to have one," Union Pacific said in a statement to Reuters. Norfolk Southern did not immediately respond to a request for comment.