Three rail unions have requested federal mediation after more than a year of unsuccessful contract negotiations with Canadian Pacific Kansas City (CPKC), focusing on issues affecting 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. They are working under 19 collective bargaining agreements. While both sides have agreed to wage increases in line with other Class I railroad agreements and to nationally negotiated health care changes, several major concerns 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 railroad workers. Their wages are about 10% lower than those earned by Soo Line workers and over 12% less than Kansas City Southern employees performing similar jobs. According to the unions, these DM&E employees are the only U.S. craft workers at any Class I railroad without coverage under either the national plan or an equivalent alternative. The unions also say that CPKC’s proposed sick leave agreement is more restrictive than those offered by other Class I railroads, and that Delaware and Hudson employees at CPKC also receive lower pay.
“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 key part of CPKC’s U.S. operations. When Canadian Pacific reacquired DM&E before merging with Kansas City Southern, company leaders pledged that DM&E employee wages would match those paid to Soo Line workers—a promise unions say has 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 talks, the unions have asked for mediation from the National Mediation Board under provisions of the Railway Labor Act.
Union leaders also note that when CPKC announced its merger plans, it projected around 750 new U.S. craft jobs would be created; however, nearly three years later, net craft employment has increased 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 an agreement on remaining issues but says it turned to federal mediation due to what it describes as continued resistance from CPKC.
IAM represents approximately 600,000 active and retired members across North America in sectors such as aerospace, defense, airlines, shipbuilding, railroads, transit systems, healthcare facilities, automotive industries among others.
BMWED is part of the International Brotherhood of Teamsters representing roughly 1.4 million members from various transportation modes as well as other sectors throughout North America.
