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US labor union backs Norfolk in proxy battle with Ancora
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US labor union backs Norfolk in proxy battle with Ancora
Apr 16, 2024 2:58 PM

April 16 (Reuters) - A top federation of U.S. labor

unions has urged Norfolk Southern ( NSC ) shareholders to vote

against Ancora's director candidates, arguing the hedge fund's

plans for the railroad would compromise safety and improvements

being considered.

"Ancora's proposed strategy for Norfolk Southern ( NSC ) is "not fit

for purpose" and the election of Ancora's proposed directors

will derail the safety and service improvements that are

currently underway at Norfolk Southern ( NSC )," the American Federation

of Labor and Congress of Industrial Organizations said in a

letter.

Ancora, in February, proposed the replacement of Norfolk

Southern's ( NSC ) top management, including its CEO, and nominated

eight directors to the railroad operator's board in response to

the company's negligence leading to a 2023 train derailment in

East Palestine, Ohio.

Norfolk Southern ( NSC ) has offered to add two new directors to its

board and rejected all eight of Ancora's candidates, saying none

would bring fresh skills or experience.

"We believe that a change in leadership at Norfolk Southern ( NSC )

would be highly disruptive to our operations, our workers, and

the North American supply chain," a Norfolk Southern ( NSC ) spokesman

said in an emailed statement on Tuesday.

Meanwhile, Ancora criticized the move and said it did not

expect much impact as "major institutional shareholders continue

to support us."

Shareholders are scheduled to vote on the proposals at the

annual meeting on May 9.

(Reporting by Aatreyee Dasgupta in Bengaluru and Svea

Herbst-Bayliss in New York; Editing by Sriraj Kalluvila)

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