Three rail unions have turned to 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 similar to those at other Class I railroads and on changes to health care negotiated nationally, 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 from DM&E remain outside the railroad industry’s National Health and Welfare Plan and receive about 10% less pay than Soo Line workers, as well as over 12% less than nearby Kansas City Southern employees. They are currently the only U.S. craft employees at any Class I railroad without coverage under either the national plan or an equivalent plan. The unions also argue that CPKC’s proposed sick leave agreement is more restrictive compared to agreements with other major railroads, and that Delaware and Hudson employees at CPKC are also 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 play a central role in CPKC’s U.S. operations. When Canadian Pacific reacquired these lines before merging with Kansas City Southern, company executives assured DM&E workers their wages would be raised to match those of Soo Line employees. According to union representatives, these promises 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.”
Due to stalled discussions, the unions have asked for mediation by the National Mediation Board under provisions of the Railway Labor Act.
The union coalition has also pointed out that while CPKC predicted its merger would generate about 750 new U.S. craft jobs, nearly three years later there has been only an increase of roughly 100 jobs above pre-merger levels.
“We are prepared to work through the Railway Labor Act process,” stated all three unions jointly. “But fairness for DM&E employees is not optional; respect and dignity are long overdue.”
The unions say they will continue working toward an agreement addressing outstanding issues but believe moving forward with federal mediation is necessary due to what they describe as resistance from CPKC.
IAM represents around 600,000 active and retired members across North America in industries such as aerospace, defense, airlines, shipbuilding, railways, transit systems, healthcare services, automotive sectors among others.
BMWED is part of the International Brotherhood of Teamsters which includes approximately 1.4 million members representing diverse industries including all forms of transportation throughout North America.
