Rail merger dispute could help decide the U.S. Senate
Add Axios as your preferred source to
see more of our stories on Google.
Illustration: Sarah Grillo/Axios
The proposed $85 billion merger between railroads Union Pacific and Norfolk Southern has become an issue in Nebraska's Senate race.
The big picture: Independent candidate Dan Osborn, a union steamfitter whom polls show has a chance at unseating Pete Ricketts (R-Neb.), has argued that deal risks worker safety and would increase costs.
- And his claims come with a personal touch, as Osborn's father was hurt on the job at Omaha-based Union Pacific when the candidate was just 16 year-old.
- Ricketts supports the merger, arguing that it would lead to job gains and higher wages.
- He's also received campaign contributions from both companies, via PACs, whereas Osborn has rejected PAC money.
Zoom out: The merger still must be approved or denied by the U.S. Surface Transportation Board, which isn't supposed to happen until sometime next year.
- Most, but not all, labor unions representing workers at the two companies oppose the deal.
What they're saying: ""People are paying attention, especially in Nebraska. It's a huge rail state. North Platte has the biggest rail yard in the world," Osborn tells Axios Pro Deals.
- We're tired of our federal delegation taking donations from Class I railroads and doing their bidding, not doing things like passing the Rail Safety Act. It's just corruption."
- "The farmers I talk to, the ones that rely more on rail than other industries, they're certainly concerned that their costs are going to go up, too."
Union Pacific spokesperson Robynn Tysve says: "Union Pacific invited Dan Osborn to sit down with us and to learn more about the merger. It is a standing invitation. We would welcome the opportunity to sit down and talk."
- Ricketts' campaign did not respond to an interview request.
The bottom line: The Nebraska Senate race has tightened in the closing stretch. Cook Political Report rates it "lean Republican."
