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4/17/2024
The AFL-CIO yesterday sent a letter to Norfolk Southern Corp. shareholders to say that the union opposes Ancora Holdings Group LLC's proposed takeover of the company's board and top leadership.
A major shareholder in NS, Ancora is seeking to replace the majority of the NS board as well as President and CEO Alan Shaw. The activist investor wants to install former United Parcel Service Inc. executive Jim Barber Jr. as CEO and former CSX executive Jamie Boychuk as chief operating officer.
"In our view, Ancora's business plan to reduce Norfolk Southern's operating ratio while improving safety and service is not realistic," the AFL-CIO letter states. "Railway labor unions, shippers and federal regulators have warned that Ancora's plans may jeopardize the safety and service improvements that Norfolk Southern has made since the 2023 derailment in East Palestine, Ohio."
The letter goes on to lay out the AFL-CIO's reasons for asking shareholders to reject Ancora's director nominees. To read the full letter, click here.
Meanwhile, Ancora earlier this week issued a presentation on what it describes as "the urgent need for leadership, safety and strategy changes" at NS. The presentation outlines Ancora's plan — prepared by its board nominees and proposed management team — for overhauling the Class I.
To view Ancora's presentation, click here.
NS shareholders will consider the Ancora proposal at their annual meeting on May 9.