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 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. They are operating under 19 collective bargaining agreements. While both sides have agreed to wage increases in line with other Class I railroad agreements and accepted changes to national health care plans, 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 do not participate in the railroad industry’s National Health and Welfare Plan. Their wages are about 10% lower than those earned by Soo Line workers and over 12% less than nearby Kansas City Southern employees, despite performing similar work. According to union representatives, these DM&E employees are currently the only U.S. craft workers at any Class I railroad without access to the national plan or an equivalent alternative. The unions also argue that CPKC’s proposed sick leave agreement is more restrictive than those in place at other major railroads, and that Delaware and Hudson employees at CPKC 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 run mainly through Iowa and Missouri and play a central role in CPKC’s U.S. operations. When Canadian Pacific reacquired DM&E before merging with Kansas City Southern, company executives promised that DM&E employee wages would be raised to match Soo Line rates. Union leaders say 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 talks stalled, the unions have asked for mediation from the National Mediation Board under provisions of the Railway Labor Act.
Union officials also noted that when CPKC announced its merger plans, it projected approximately 750 new U.S. craft jobs would be created; however, nearly three years later net 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 intend to continue pursuing an agreement addressing all outstanding issues but say they moved forward with federal mediation due to what they describe as continued resistance from CPKC.
IAM represents around 600,000 active and retired members across various industries in North America including aerospace, defense, airlines, shipbuilding, railroads, transit systems, healthcare services, automotive manufacturing among others.
BMWED is part of the International Brotherhood of Teamsters representing roughly 1.4 million members involved in transportation sectors as well as other industries throughout North America.
