Three rail unions have requested federal mediation in their ongoing contract negotiations with Canadian Pacific Kansas City (CPKC), citing unresolved issues over pay and benefits for 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 bargaining as a coalition with CPKC since February 2025. The talks cover 19 collective bargaining agreements. While there has been agreement on wage increases consistent with other Class I railroad deals and some health care changes, significant disputes 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 the unions, DM&E workers are not included in the National Health and Welfare Plan for the railroad industry. They earn about 10% less than Soo Line workers and more than 12% less than Kansas City Southern employees who do similar work. DM&E craft employees are reportedly the only U.S.-based craft workers at any Class I railroad without coverage under either the national plan or an equivalent plan. The unions also state that CPKC’s proposed sick leave policy is more restrictive than those at other major railroads, and that Delaware and Hudson employees at CPKC face similar pay disparities.
“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 these lines before merging with Kansas City Southern, company executives pledged to raise DM&E wages to match those at Soo Line. The unions claim this promise 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.”
Negotiations have reached an impasse, leading the unions to request assistance from the National Mediation Board under provisions of the Railway Labor Act.
The union coalition also pointed out that while CPKC projected its merger would generate about 750 new U.S. craft jobs, net employment is currently only around 100 jobs above pre-merger levels nearly three years later.
“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.”
Efforts will continue to address remaining issues through mediation after what unions describe as continued resistance from CPKC management.
IAM represents about 600,000 active and retired members across North America in sectors such as aerospace, defense, airlines, shipbuilding, railroads, transit systems, healthcare, automotive manufacturing, among others. The BMWED division belongs to the International Brotherhood of Teamsters which represents approximately 1.4 million members across transportation modes throughout North America.
