Three rail labor unions have turned to federal mediation after over a year of unsuccessful contract negotiations with Canadian Pacific Kansas City (CPKC), focusing on disputes involving pay and benefits for employees on the company’s former Dakota, Minnesota and Eastern (DM&E) lines.
The coalition—comprising 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)—has been in talks with CPKC since February 2025 under 19 collective bargaining agreements. While both sides have agreed on wage increases similar to those negotiated with other major U.S. railroads, as well as national health care changes, several key issues remain unresolved.
“CPKC leadership has publicly warned others to be skeptical of merger promises, yet they are breaking their own,” said IAM District 19 President & Directing General Chair Reece Murtagh. “Our members are still waiting for the wage parity and benefits they were told would come with this merger.”
Employees on CPKC’s DM&E lines are not covered by the railroad industry’s National Health and Welfare Plan. They also earn about 10% less than Soo Line workers and more than 12% less than nearby Kansas City Southern employees for comparable work. According to the unions, these workers are currently the only U.S. craft employees at any Class I railroad who lack access to either the national plan or an equivalent alternative. The sick leave proposal from CPKC is reportedly more restrictive than agreements reached with other Class I railroads, and Delaware and Hudson employees also receive lower pay.
“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 play a central role in CPKC’s integrated operations in the United States. After Canadian Pacific reacquired DM&E and later merged with Kansas City Southern, executives assured DM&E staff that their wages would match those of Soo Line workers—a commitment that union leaders say has not been fulfilled.
“These workers are doing Class I railroad work for Class II wages, and CPKC knows it,” said BMWED President Tony Cardwell. “There is no legitimate justification for treating DM&E employees as second-class railroaders on a fully integrated Class I system.”
With contract talks stalled, the unions have requested mediation services from the National Mediation Board under provisions of the Railway Labor Act.
Union representatives also point out that when CPKC announced its merger plans, it projected an increase of about 750 new U.S. craft jobs. Nearly three years later, net employment among these workers has increased by only about 100 positions.
“We are prepared to work through the Railway Labor Act process,” stated union officials jointly. “But fairness for DM&E employees is not optional; respect and dignity are long overdue.”
The unions intend to continue negotiating over other outstanding issues but have moved forward with seeking federal mediation due to what they describe as ongoing resistance from CPKC management.
IAM represents approximately 600,000 active and retired members across North America in sectors including aerospace, defense, airlines, shipbuilding, railroads, transit systems, healthcare, automotive manufacturing, and more.
BMWED is part of the International Brotherhood of Teamsters and represents around 1.4 million members spanning transportation industries throughout North America.
