Whereas, Railroads in North America have in recent decades combined and merged to the point where just a handful of very wealthy and powerful corporations control the industry across Canada, Mexico, and the United States; and
Whereas, despite promises of greater efficiencies, expedited freight movements and more freight moves, the nation’s railroads are moving less freight, not more than a generation ago; and
Whereas, what optimizations are in fact created by mergers and acquisitions apparently result not so much in cheaper rates, more robust physical plant, or better passenger service, but simply greater profits, more large-scale dividends, and additional stock buybacks; and
Whereas, in spite of commitments of job creating, history shows that generally, rail mergers result in fewer railroad jobs, not more; and
Whereas, numerous communities along the right-of-way have expressed very real safety concerns considering the rail industry’s running excessively long trains that block critical road crossings, intrude upon neighborhoods and have a more consequential propensity to derail; and
Whereas, previous mergers including the Conrail carve-up to NS and CSX, and the UP-SP merger have resulted in severe traffic congestion, plugged yards, dissatisfied shippers and delayed passenger trains; and
Whereas, Senator Warren in a letter in early March 2023 claims that the merger could result in “significant job losses and service disruptions,” and that the merger “would reduce competition in an already highly consolidated market and result in increase shipping costs.”; and
Whereas, the merger would facilitate increased shipment of highly polluting and volatile tar sands from Canada to the Gulf of Mexico; and
Whereas, U.S. citizens have grave concerns that the special authority bestowed upon Canadian railway police in Canada would be exported to the merged railroad in the United States; and
Whereas, Every Class One rail merger increases the political power of the industry, enabling it to more effectively lobby against new and existing safety regulations, passenger rail expansion, and a myriad of regulations that while good for society, are considered harmful to the railroads’ bottom line; and
Whereas, the Class One rail carriers have proven themselves hostile to workers’ interests, refusing to bargain in good faith, and yet expect the workforce to then support their corporate expansion plans; and
Therefore, Be it Resolved that Railroad Workers United opposes the proposed merger between Canadian Pacific and Kansas City Southern; and
Be it Further Resolved that RWU urge the several rail unions to do likewise and oppose the merger; and
Be it Further Resolved that RWU will actively campaign against the proposed CP-KCS merger and encourage its members to engage in advocacy efforts to raise awareness about the negative impacts of the merger on the industry, workers, and communities; and
Be it Finally Resolved, that RWU will call for increased regulatory scrutiny of mergers and acquisitions in the railroad industry to ensure that they do not harm public interests, including workers' rights, safety, and environmental protection.
Adopted by the RWU Steering Committee 3/13/2023
