Three rail labor unions have called for federal mediation in their ongoing contract dispute 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 that match those at other major U.S. railroads and have accepted nationally negotiated changes to health care, several key disagreements remain.
“IAM District 19 President & Directing General Chair Reece Murtagh stated, ‘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.’”
Employees on the DM&E lines are not included in the railroad industry’s National Health and Welfare Plan. Their wages are about 10% lower than those paid to Soo Line workers and more than 12% lower than what Kansas City Southern employees receive for similar work. These DM&E employees are currently the only U.S. craft workers at any Class I railroad who do not have coverage under the national plan or an equivalent alternative. The unions also point out that CPKC’s proposed sick leave agreement is more restrictive compared to those in place at other Class I railroads, and that Delaware and Hudson employees at CPKC face similar pay issues.
“BRS Midwest Vice President Kurt Mullins said, ‘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 routes run mostly through Iowa and Missouri and form a central part of CPKC’s operations in the United States. When Canadian Pacific reacquired these lines before merging with Kansas City Southern, company leaders promised that employee wages would be brought up to match Soo Line rates—a promise union officials say has not been fulfilled.
“BMWED President Tony Cardwell said, ‘These workers are doing Class I railroad work for Class II wages, and CPKC knows it. There is no legitimate justification for treating DM&E employees as second-class railroaders on a fully integrated Class I system.’”
Due to lack of progress in negotiations, the unions have asked for assistance from the National Mediation Board under provisions set by the Railway Labor Act.
Union representatives also note that while CPKC projected its merger would result in around 750 new U.S. craft jobs, actual employment levels have risen by only about 100 positions above pre-merger figures after nearly three years.
In a joint statement, union leaders said: “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.”
The unions intend to continue seeking solutions on outstanding issues but decided mediation was necessary due to what they describe as continued resistance from CPKC.
IAM represents approximately 600,000 active and retired members across various industries including aerospace, defense, airlines, shipbuilding, railways, transit systems, healthcare services, automotive sectors throughout North America.
BMWED operates as part of the International Brotherhood of Teamsters representing about 1.4 million members across multiple transportation modes throughout North America.
