Three rail unions have called for federal mediation after more than a year of unsuccessful contract negotiations with Canadian Pacific Kansas City (CPKC), focusing on pay and benefits issues 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. The talks cover 19 collective bargaining agreements. While both sides have agreed to wage increases in line with other Class I railroads and to changes in nationally negotiated health care, key disputes 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 the DM&E lines are not included in the railroad industry’s National Health and Welfare Plan and earn about 10% less than Soo Line workers and over 12% less than Kansas City Southern employees doing similar work. These workers are currently the only U.S. craft employees at any Class I railroad without coverage under the national plan or an equivalent plan. The unions also say that CPKC’s proposed sick leave agreement is more restrictive than those at other Class I railroads, and that 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 run mainly 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 wages would match those on Soo Line. According to union leaders, these commitments have not been met.
“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 the Railway Labor Act.
Union leaders also noted that while CPKC had projected its merger would create around 750 new U.S. craft jobs, nearly three years later net craft employment is only about 100 jobs higher than before the merger.
“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 remaining issues but say that due to what they describe as resistance from CPKC, they have moved forward by requesting federal mediation.
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 in transportation sectors across North America.
