Three rail unions have called for federal mediation after contract negotiations with Canadian Pacific Kansas City (CPKC) failed to resolve key issues, particularly regarding pay and benefits for employees 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. The talks cover 19 collective bargaining agreements. While both sides have agreed on wage increases similar to those at other major railroads and accepted national health care changes, several disputes remain.
“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.”
According to the unions, DM&E employees are not included in the railroad industry’s National Health and Welfare Plan. Their wages are about 10% lower than Soo Line workers and more than 12% lower than Kansas City Southern employees doing similar work. These employees are reportedly the only U.S. craft workers at any Class I railroad without coverage under the national plan or an equivalent. The unions also say that CPKC’s proposed sick leave agreement is more restrictive than those at other Class I railroads, and Delaware and Hudson employees 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 primarily run 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 that DM&E workers’ wages would match those at Soo Line. Union leaders claim 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.”
With negotiations stalled, the unions have requested mediation from the National Mediation Board under the Railway Labor Act.
The union coalition also pointed out that CPKC had projected its merger would create around 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.
“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 unions plan to continue seeking an agreement on unresolved issues but decided to move forward with federal mediation due to what they describe as CPKC’s unwillingness to compromise.
IAM represents approximately 600,000 active and retired members across various industries in North America. BMWED is part of the International Brotherhood of Teamsters, representing about 1.4 million members across transportation sectors in North America.
