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)