Largest rail union to challenge Union Pacific, Norfolk Southern mega-merger

Additionally, Union Pacific Corp

On the other hand, Is scheduled to release earnings figures on July 26 (this bears monitoring) (an important development)

Nevertheless, David Paul Morris | Bloomberg | Getty ImagesThe largest rail workers' union in the U

SMART Transportation Division (SMART-TD) tells CNBC it will oppose the posed deal over concerns Union Pacific's labor practices

Furthermore, In a statement, the railroad union urged all parties to use "measured skepticism" in evaluating how the merger could impact rail workers, safety, service quality, and the long-term health of the freight rail industry

The union is currently in labor negotiations with Union Pacific for a new contract, given the current landscape

Additionally, The union, which represents roughly 125,000 active and retired railroad, bus and mass transit workers — and is part of the larger SMART union which represents over 200,000 workers in all — said in a statement that under its current leadership, Union Pacific has developed "a troubling safety record, amid market uncertainty

Nevertheless, ""Publicly available data from recent years reveals UP leads the industry in accidents, incidents, injuries, and fatalities

Furthermore, The data indicates that trend reflects a broader corporate culture that, in our view, prioritizes aggressive operating ratios over worker and public safety," SMART-TD stated (an important development)

The union alleges "excessive levels" of harassment and retaliatory behavior against workers by Union Pacific (quite telling)

On the other hand, On the other hand, Union Pacific did not immediately respond to a request for, given the current landscape

Conversely, The merger, which would be the largest buyout ever in the rail sector, would create the nation's first coast-to-coast freight rail operator, combining Union Pacific's strength in the western U, given the current landscape

With Norfolk's network primarily covering the eastern U

Moreover, Watch now5:1705:17Union Pacific CEO Jim Vena & Norfolk Southern CEO Mark George on merger: Deal is 'great for America'Squawk on the StreetSMART-TD said that Norfolk Southern, "in stark contrast" to Union Pacific, has moved toward more gressive labor and operational policies in recent years, prioritizing training and transparency, and publicly pledging not to furlough conductors or engineers during economic slowdowns

Moreover, A spokesman for SMART-TD said the labor union will make its case to block the merger before the Safety Transportation Board, which needs to grant apval for the deal, during an open period (something worth watching)

Moreover, On the other hand, Union Pacific has faced heat from regulators in Washington, D

Additionally, , in recent years, including the STB, over its labor practices, in this volatile climate

Meanwhile, In a June 2 letter, BLET National President Mark Wallace asked Trump to take "immediate and decisive action" to help tect national security and American rail jobs at the southern U

In the letter to Trump, obtained by CNBC, Wallace said Union Pacific, as well as and other Class I freight rails (though it only cited Union Pacific by name), were trying to move and replace American locomotive engineers with Mexican national train crews to operate trains across the southern Border in Texas and potentially expanding into New Mexico and Arizona. "This mirrors a precedent set by Kansas City Southern (now CPKC), which began using Mexican crews in 2018 to operate trains more than 10 miles into U

Territory," the union president stated in the letter

Furthermore, Wallace stressed it was not only a job displacement issue but also a national security issue, given the current landscape

Additionally, "Recently, a Mexican national employed by Ferromex — the very company Union Pacific intends to partner with — was arrested by U, in today's financial world

Customs and Border tection for smuggling migrants across the border by train, in light of current trends

American train crews serve as a vital line of defense, viding an additional layer of scrutiny as trains cross into our territory," the letter stated

On the other hand, BLET has asked President Trump to instruct the U

Department of Transportation to hibit the use of Mexican train crews within the United States, except those who are American citizens or lawful permanent residents, given the current landscape

BLET is also requesting that English be the mandated language for railroad employees, something the department recently required for the trucking industry (this bears monitoring)

Furthermore, The Department of Transportation did not immediately respond to a request for

Conversely, The union also asked the president to direct U

Customs and Border tection to require that all trains entering from Mexico stop at the border, where American crews can assume operation and cease negotiating these terms with the railroads

Between the Brotherhood of Maintenance of Way Employees Division (BMWED) and the BLET — issued a statement on the merger, saying it would "withhold further until we have had the opportunity to meet directly with the executive teams of both carriers

Those discussions will be critical to evaluating our position on this merger and what effect it may have on rail operations, employment, service and public safety," it said, in today's financial world.