Three rail unions have called for 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. These talks cover 19 collective bargaining agreements. While both sides have agreed on wage increases in line with other Class I railroad agreements and changes to health care negotiated at the national level, 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 do not participate in the National Health and Welfare Plan that covers most U.S. railroad workers. They earn about 10% less than Soo Line workers and over 12% less than Kansas City Southern employees doing similar jobs. According to the unions, these DM&E employees are currently the only U.S. craft employees at any Class I railroad without coverage under the national plan or an equivalent alternative. The unions also state that CPKC’s proposed sick leave agreement is more restrictive than those in place at other major railroads, and that Delaware and Hudson employees are similarly underpaid.
“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 these lines before merging with Kansas City Southern, company executives promised that DM&E employee wages would be increased to match Soo Line rates. Union leaders claim these commitments have 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 negotiations stalled, the unions have asked for mediation by 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 about 750 new U.S. craft jobs would be created; however, nearly three years later, net craft employment has risen by only about 100 positions above pre-merger levels.
“We are prepared to work through the Railway Labor Act process,” the unions said in a joint statement. “But fairness for DM&E employees is not optional; respect and dignity are long overdue.”
The coalition intends to continue seeking solutions to remaining disputes but says that due to what it describes as CPKC’s lack of cooperation, it has moved forward with requesting federal mediation.
IAM represents approximately 600,000 active and retired members across several industries in North America including aerospace, defense, airlines, shipbuilding, railroads, transit systems, healthcare providers, automotive sectors among others.
BMWED is part of the International Brotherhood of Teamsters representing around 1.4 million members from various transportation modes as well as other industries throughout North America.
