Three major rail labor unions have requested federal mediation in their contract negotiations with Canadian Pacific Kansas City (CPKC), after more than a year without progress on key issues. The dispute centers on pay and benefits for employees working 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. Their talks cover 19 collective bargaining agreements. While both sides have agreed to wage increases in line with other Class I railroad contracts and changes to health care, disagreements remain unresolved.
“IAM District 19 President & Directing General Chair Reece Murtagh said, “CPKC leadership has publicly warned others to be skeptical of merger promises, yet they are breaking their own. Our members are still waiting for the wage parity and benefits they were told would come with this merger.”
DM&E employees are not included in the railroad industry’s National Health and Welfare Plan. They earn about 10% less than Soo Line workers and more than 12% less than nearby Kansas City Southern employees doing similar jobs. According to union officials, these workers are currently the only U.S. craft employees at any Class I railroad without national or equivalent health plan coverage. The unions also object to CPKC’s proposed sick leave agreement, calling it more restrictive than those at other major railroads.
BRS Midwest Vice President Kurt Mullins stated, “CPKC calls itself ‘One Railroad Connected,’ but its actions tell a very different story. 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 leaders assured workers that wages would match those paid on Soo Line routes; unions now say those promises have not been kept.
“These workers are doing Class I railroad work for Class II wages, and CPKC knows it,” BMWED President Tony Cardwell said. “There is no legitimate justification for treating DM&E employees as second-class railroaders on a fully integrated Class I system.”
With contract discussions stalled, the unions have asked the National Mediation Board to step in under provisions of the Railway Labor Act.
Union leaders further note that when planning its merger with Kansas City Southern, CPKC predicted about 750 new U.S. craft jobs would result from consolidation efforts. However, nearly three years later net craft employment is only about 100 positions higher than pre-merger levels.
In a joint statement the unions added: “We are prepared to work through the Railway Labor Act process. But fairness for DM&E employees is not optional; respect and dignity are long overdue.”
Negotiations will continue over outstanding issues as mediation begins.
The IAM represents around 600,000 active and retired members across several industries in North America including rail transportation.
The BMWED is part of the International Brotherhood of Teamsters representing approximately 1.4 million members from various transportation sectors throughout North America.
