Three rail unions have requested federal mediation after more than a year of unsuccessful contract negotiations with Canadian Pacific Kansas City (CPKC). The dispute centers on pay and benefits for employees working on the former Dakota, Minnesota and Eastern (DM&E) lines.
The International Association of Machinists and Aerospace Workers (IAM) District 19, the Brotherhood of Maintenance of Way Employees Division (BMWED), and the Brotherhood of Railroad Signalmen (BRS) have been negotiating as a coalition with CPKC since February 2025. They are operating under 19 collective bargaining agreements. While both sides have agreed to wage increases similar to those at other major railroads and to changes in health care that were negotiated nationally, several important issues remain unresolved.
“IAM District 19 President & Directing General Chair Reece Murtagh said, ‘CPKC leadership has publicly warned others to be skeptical of merger promises, yet they are breaking their own. Our members are still waiting for the wage parity and benefits they were told would come with this merger.’”
According to the unions, DM&E employees are not included in the railroad industry’s National Health and Welfare Plan. They earn about 10% less than Soo Line workers and over 12% less than Kansas City Southern employees, despite doing similar work. These employees are reportedly the only U.S. craft workers at any Class I railroad without national or equivalent health coverage. The unions also state that CPKC’s proposed sick leave agreement is more restrictive than those at other major railroads, and that Delaware and Hudson employees at CPKC are also paid less.
“‘CPKC calls itself “One Railroad Connected,” but its actions tell a very different story,’ said BRS Midwest Vice President Kurt Mullins. ‘Signalmen on the DM&E are treated differently solely because of legacy geography, not because of the work they perform.’”
The DM&E lines run mainly through Iowa and Missouri and form a central part of CPKC’s U.S. operations. When Canadian Pacific reacquired DM&E before merging with Kansas City Southern, executives promised to raise DM&E wages to match Soo Line rates. The unions claim these promises have not been fulfilled.
“BMWED President Tony Cardwell said, ‘These workers are doing Class I railroad work for Class II wages, and CPKC knows it. There is no legitimate justification for treating DM&E employees as second-class railroaders on a fully integrated Class I system.’”
With talks stalled, the unions have asked for mediation from the National Mediation Board under the Railway Labor Act.
The union coalition also points out that CPKC had projected its merger would create about 750 new U.S. craft jobs; however, nearly three years later, net craft employment has increased by only about 100 jobs compared to pre-merger levels.
“In a joint statement, the unions said: ‘We are prepared to work through the Railway Labor Act process. But fairness for DM&E employees is not optional; respect and dignity are long overdue.’”
The unions intend to continue seeking an agreement on remaining issues but say that due to what they describe as CPKC’s unwillingness to compromise, they have moved forward with federal mediation.
IAM represents around 600,000 active and retired members across North America in sectors such as aerospace, defense, airlines, shipbuilding, railroads, transit systems, healthcare services, automotive industries, among others.
BMWED is part of the International Brotherhood of Teamsters representing approximately 1.4 million members in transportation-related fields as well as other industries throughout North America.
