UPDATED: Rail unions divided over Norfolk Southern proxy fight

Editor's note: This story has been updated with statements from Norfolk Southern Corp. and several labor unions.

The Brotherhood of Locomotive Engineers and Trainmen (BLET), an affiliate of the rail division of the International Brotherhood of Teamsters, today announced that it has determined, after careful review and new developments since the proxy battle began, that a change in leadership at Norfolk Southern Corp. is necessary.

The announcement marks a reversal from BLET’s position in February, when it said that it would “vigorously oppose” Ancora Holding Group LLC’s proposal to remake the NS board and replace current NS President and CEO Alan Shaw.

“BLET’s three elected general chairmen representing locomotive engineers and trainmen at Norfolk Southern met with Ancora’s leadership team yesterday and determined that they are the right leaders for Norfolk Southern moving forward,” BLET National President Edward Hall said in a press release issued today. “After the railroad’s CEO Alan Shaw hired COO John Orr and following the public comments of both those executives on their strategy for NS, our general chairmen determined that a change at the top is needed. Although this decision was not easy, the General Chairmen believe it is necessary.”

The reversal in BLET's position comes a day after the Brotherhood of Maintenance of Way Employes Division-International Brotherhood of Teamsters (BMWED-IBT) announced its support for the Ancora proposal.

"The BMWED-IBT, after more than a year of non-committal hedging on reasonable, needed changes and untenable shakiness in management at Norfolk Southern, has determined that a change in leadership is needed for the freight rail carrier and its employees," BMWED-IBT President Tony Cardwell said yesterday in a press release.

A major shareholder at NS, Ancora is running a proxy campaign for its seven candidates to be elected to the NS board. The investor group also has proposed that the Class I’s top leadership be replaced with former United Parcel Service Inc. executive Jim Barber as CEO and former CSX executive Jamie Boychuk as chief operating officer.

NS has proposed its own set of board candidates. Shareholders will decide the Class I’s future leadership during their annual meeting on May 9.

After BLET released its statement earlier today, a coalition of other unions issued what they called a "warning" that Ancora's proposed strategy for NS will jeopardize safety and service improvements at the Class I.

"In our view, Ancora's business plan to reduce Norfolk Southern's operating ratio while improving safety and service is not only unrealistic but runs contrary to their stated intent," the unions' statement reads.

The statement continues: "Railway labor unions, shippers and federal regulators have all warned that Ancora’s plans will jeopardize the safety and service improvements that Norfolk Southern has made since the 2023 derailment in East Palestine, Ohio. We further believe that Ancora’s plans for increasing profits are nothing more than short-term cost-cutting to artificially lower the operating ratio – all at the expense of its customers, long-term investors and ultimately the U.S. economy."

The unions that signed the statement are:

• International Association of Machinists and Aerospace Workers (IAM) Rail Division; 
• Transportation Communications Union;
• Brotherhood of Railway Carmen;
• International Brotherhood of Boilermakers;
• Brotherhood of Railway Signalmen;
• American Train Dispatchers Association;
• Sheet Metal, Air, Rail and Transportation Workers (SMART)
• Transportation Division of the Sheet Metal, Air, Rail, and Transportation Workers (SMART-TD);
• Sheet Metal, Air, Rail, and Transportation Workers- Mechanical;
• National Conference of Firemen & Oilers; and
• Transport Workers Union.

In its own statement issued today, NS noted that it has the support of unions representing the majority of its craft workers.

"Together with our unions, we have made significant progress to create a safer, more productive railroad," NS officials said in the prepared statement. "In fact, unions representing the majority of our craft workers have publicly supported our strategy and raised concerns about the dangers of Ancora’s plan."

The company remains focused on improving its operational performance, employees' quality of life and working environment, NS officials said.

"In contrast, Ancora is misleading shareholders and employees with false promises that will destroy shareholder value, and where the mathematical reality proves it would require thousands of furloughs and cause irreparable damage to safety and service at Norfolk Southern," the NS statement said.