Baldwin Demands the Surface Transportation Board Take Union Pacific’s Threats of Retaliation Against Shippers Seriously

WASHINGTON, D.C. - U.S. Senator Tammy Baldwin (D-WI) is urging the Surface Transportation Board (STB) to take Union Pacific's threat of retaliation against shippers who do not support its merger with Norfolk Southern seriously. Baldwin's call comes as Union Pacific CEO Jim Vena and company representatives have reportedly made numerous comments alleging retaliation against shippers who oppose the merger, including threats of predatory rate increases during contract renewals, unfair demurrage fines, drop-offs in service, or weaponized embargoes. Baldwin has been an outspoken critic of the mega-rail merger, citing the reduction of competition, worsening already poor service, and higher costs for Wisconsin farmers, manufacturers, and consumers.

"Given what is at stake with a rail merger of this magnitude, I ask that you address threats of retaliation and make clear retaliation by railroads will not be tolerated by the STB," wrote Senator Baldwin.

"I am deeply concerned by Mr. Vena's words and recent actions as his company attempts to see this merger process rubber stamped and approved with haste. Given the magnitude of this potential merger and the impact it would have on our nation's freight economy and the supply chain, it is simply unacceptable for UP to engage in this type of behavior," Baldwin concluded.

The merger, in which Union Pacific agreed to acquire Norfolk Southern, would be the most significant consolidation in freight rail in decades, reshaping the U.S. freight rail industry and supply chain. Baldwin has been critical of the rail merger, citing the continued consolidation in the railroad industry and impacts on manufacturers, agriculture, small businesses, and consumers.

In 2025, Senators Baldwin and Roger Marshall (R-KS) called on the Surface Transportation Board to scrutinize the impact of this merger on the already poor service and high costs experienced by American businesses and consumers that rely on freight rail. That letter came after President Trump illegally fired former STB member Robert Primus ahead of the proposed megamerger. As the STB considers this merger, Union Pacific's CEO visited President Trump in the Oval Office and committed to helping fund the President's $400 million White House ballroom.

Since the 1950s, the rail industry has consolidated from over 100 Class I freight railroads to only six today, leaving U.S. manufacturers, utility companies, agricultural producers, and small businesses paying excessive rates despite poor service and reliability.

A full version of this letter is available here and below.

Dear Chair Fuchs, Vice Chair Schultz, Member Hedlund, and Member Kloster,

I write with concerns about the threat of potential retaliation by Union Pacific (UP) towards shippers and other rail stakeholders who choose not to publicly support the merger between UP and Norfolk Southern (NS). Threats of retaliation must be taken seriously, as they directly undermine the Surface Transportation Board's (STB or Board) review process and could prevent shippers from meaningfully participating in a forthcoming public comment period on the merger application. Given what is at stake with a rail merger of this magnitude, I ask that you address threats of retaliation and make clear retaliation by railroads will not be tolerated by the STB.

It has come to my attention that UP CEO Jim Vena has made remarks at conferences and closed-door meetings threatening to retaliate against stakeholders who oppose their merger application. This includes comments from Mr. Vena at the Southwest Association of Rail Shippers 2026 Annual Meeting in Houston in March, when he issued a thinly veiled threat to raise rates for customers who did not publicly support the merger.

The STB has acknowledged retaliation by railroads in the past, and now is the time to send a clear message to railroads and shippers that it will not be tolerated. In January 2025, former Chairman Robert Primus made a statement addressing the widespread issue of retaliation, whether it be in the form of rate increases, cutbacks in service, or refusals to provide new service upon request. In 2023, former Chairman Martin Oberman expressed frustration with the difficulty of getting shippers to comment on matters before the Board due to fears of retaliation. The freight rail industry has a long history of retaliation, and I can assure you that shippers nationwide are taking these comments at face value. I have heard from numerous stakeholders that they are afraid to publicly relay their concerns, knowing that UP can retaliate against them. Threats of retaliation discourage stakeholders from participating and undermine the STB's ability to conduct a rigorous review of the proposed merger. The Board needs to hear directly from shipper companies to better understand the impacts of the merger UP is proposing.

I am deeply concerned by Mr. Vena's words and recent actions as his company attempts to see this merger process rubber stamped and approved with haste. Given the magnitude of this potential merger and the impact it would have on our nation's freight economy and the supply chain, it is simply unacceptable for UP to engage in this type of behavior. I urge the STB to address Mr. Vena's comments and take rail stakeholders' concerns seriously as you review the revised merger application.

Sincerely,

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