Three rail unions have requested federal mediation after more than a year of contract negotiations with Canadian Pacific Kansas City (CPKC) failed to resolve disputes over pay and benefits for workers 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 on wage increases similar to those at other Class I railroads and on national health care changes, major disagreements 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.”
DM&E employees at CPKC are not included in the railroad industry’s National Health and Welfare Plan. They earn about 10% less than Soo Line workers and over 12% less than Kansas City Southern employees who do similar work. These DM&E employees are reportedly the only U.S. craft workers at any Class I railroad without access to this national plan or an equivalent benefit. The unions also say that CPKC’s proposed sick leave agreement is more restrictive than those offered by other major railroads, while Delaware and Hudson employees face lower pay as well.
“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 mainly run through Iowa and Missouri, forming a central part of CPKC’s U.S. network. When Canadian Pacific reacquired DM&E before merging with Kansas City Southern, executives had promised that DM&E employee wages would match those paid to Soo Line staff—a commitment union leaders say remains unfulfilled.
“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.”
With negotiations stalled, the unions have turned to the National Mediation Board under provisions of the Railway Labor Act.
The unions also point out that while CPKC predicted its merger would create about 750 new U.S. craft jobs, actual net employment has increased by only around 100 positions since before the merger.
“We are prepared to work through the Railway Labor Act process,” stated all three unions jointly. “But fairness for DM&E employees is not optional; respect and dignity are long overdue.”
The coalition plans to continue seeking resolutions for outstanding issues but says it was necessary to move forward with federal mediation due to what it describes as continued resistance from CPKC management.
IAM represents approximately 600,000 active and retired members in sectors such as aerospace, defense, airlines, shipbuilding, railroads, transit systems, healthcare services, automotive industries across North America. BMWED is part of the International Brotherhood of Teamsters representing roughly 1.4 million members from various transportation fields throughout North America.
