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 company’s 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 changes to health care that were negotiated nationally, key disagreements 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 union representatives, DM&E workers are not included in the railroad industry’s National Health and Welfare Plan. They also earn about 10% less than Soo Line workers and over 12% less than nearby Kansas City Southern employees, even though they perform similar work. These DM&E employees are reportedly the only U.S. craft employees at any Class I railroad who do not receive coverage under either the national plan or an equivalent plan. Unions also say that CPKC’s proposed sick leave agreement is more restrictive compared to what is offered by other Class I railroads, and that Delaware and Hudson employees at CPKC face lower pay as well.
“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 former DM&E lines mainly run 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, executives assured workers their wages would match those paid to Soo Line staff—a promise unions claim has not been kept.
“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.”
After talks stalled, the unions turned to the National Mediation Board for assistance under provisions of the Railway Labor Act.
In addition to compensation issues, union leaders noted that when CPKC announced its merger plans it projected about 750 new U.S. craft jobs would be created; nearly three years later, net job growth stands at roughly 100 positions 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 seeking agreements on outstanding matters but felt compelled to request federal mediation due to what they describe as persistent resistance from CPKC management.
IAM represents approximately 600,000 active and retired members across several industries in North America including aerospace, defense, airlines, shipbuilding, railroads, transit systems, healthcare sectors, automotive manufacturing among others. The BMWED is part of the International Brotherhood of Teamsters which counts around 1.4 million members across various transportation modes throughout North America.
