Unions Split as Freight Rail Merger Reaches Critical Juncture

A looming $85 billion deal to form the nation’s first transcontinental freight railroad is dividing organized labor as a federal body considers a merger application filed Dec. 19 by Union Pacific Corp. and Norfolk Southern Corp.

Unions supporting the proposed deal before the nominally independent Surface Transportation Board include SMART-TD, the largest rail union in the country and an affiliate of behemoth AFL-CIO.

The Brotherhood of Locomotive Engineers and Trainmen as well as the Brotherhood of Maintenance of Way Employes—who have the largest memberships working at the two railroads and are part of the ...