By Jody Godoy
(Reuters) -The largest rail union in the United States said Tuesday it intends to oppose Union Pacific’s proposed $85-billion buy of smaller rival Norfolk Southern in regulatory proceedings, citing concerns about how the largest-ever buyout in the sector will affect U.S. workers and infrastructure.
The transportation division of SMART, the International Association of Sheet Metal, Air, Rail and Transportation Workers, said it plans to oppose the merger when it comes before the Surface Transportation Board for review.
“We approach this development with measured skepticism rooted in the real-world impact such consolidation could have on rail workers, safety, service quality, and the long-term health of the freight rail industry,” the union said in a statement.
If approved, the deal would create the country’s first coast-to-coast freight rail operator, combining Union Pacific’s stronghold in the western two-thirds of the United States with Norfolk’s 19,500-mile network that primarily spans 22 eastern states.
(Reporting by Jody Godoy in New York; Editing by Chizu Nomiyama )
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