CPKC mechanical employees ratify new collective bargaining agreement

Rhea-AI Summary

Canadian Pacific Kansas City (CP) announced that Unifor, representing approximately 1,200 mechanical employees across Canada, has ratified a new four-year collective agreement. The agreement provides improved wages and benefits for mechanics, labourers, diesel service attendants, and mechanical support staff.

CPKC CEO Keith Creel highlighted that the agreement, which received strong support among mechanical employees, ensures long-term labor stability while maintaining safe and efficient customer service. This marks the second collective agreement ratification in 2025 for CPKC, following an earlier agreement with Teamsters Canada Rail Conference Maintenance of Way Employees Division, which represents about 2,300 engineering services employees.

Positive

• Successful ratification of labor agreement with 1,200 mechanical employees
• Second successful labor agreement in 2025, following deal with 2,300 engineering employees
• Long-term labor stability secured through four-year agreement
• Strong support from mechanical employees for the ratification

Negative

• None.

Insights

Labor Relations Analyst

The ratification of two significant collective agreements in rapid succession represents a strategic victory for CPKC, particularly during its critical post-merger integration phase. The new four-year agreement with Unifor, covering 1,200 mechanical employees, combined with the earlier agreement for 2,300 engineering services workers, now provides labor stability for approximately 3,500 essential operational staff.

This development carries several key implications for investors: First, the successful negotiation at the bargaining table, without work stoppages, demonstrates CPKC's strong labor relations capabilities - a important factor for railroad operators where service reliability directly impacts customer retention and market share. Second, the timing of these agreements is strategically advantageous, as it eliminates potential labor-related disruptions during the sensitive post-merger integration period when operational stability is paramount.

The agreement's four-year duration provides an extended runway for implementing merger-related operational changes and efficiency improvements without labor relations concerns. While the improved wages and benefits will increase operational costs, this is offset by the value of guaranteed operational continuity and the ability to fully realize merger synergies. The strong ratification support from mechanical employees suggests the terms strike an appropriate balance between worker compensation and company sustainability.

For the broader transportation sector, these agreements set a constructive precedent for labor negotiations, particularly significant given the recent history of contentious railroad labor relations in North America. The successful completion of these agreements positions CPKC favorably against competitors who may face upcoming labor negotiations in an increasingly tight labor market.

CALGARY, AB, Feb. 24, 2025 /PRNewswire/ - Canadian Pacific Kansas City (TSX: CP) (NYSE: CP) (CPKC) today said that Unifor, representing mechanical employees in Canada, has ratified a new four-year collective agreement.

"By working collaboratively together with Unifor, we have completed another collective agreement reached at the bargaining table that benefits our employees with improved wages and benefits for years to come," said Keith Creel, CPKC President and Chief Executive Officer. "This agreement, ratified with strong support among our mechanical employees, brings long-term labor stability to our railroaders as we continue to safely and efficiently serve our customers moving the Canadian and North American economies." 

Unifor represents approximately 1,200 mechanics, labourers, diesel service attendants and mechanical support staff across Canada.

This is the second new collective agreement ratified this year by CPKC employees in Canada. Teamsters Canada Rail Conference Maintenance of Way Employees Division representing approximately 2,300 engineering services employees in Canada ratified a new four-year collective agreement earlier this month.

About CPKC

With its global headquarters in Calgary, Alta., Canada, CPKC is the first and only single-line transnational railway linking Canada, the United States and México, with unrivaled access to major ports from Vancouver to Atlantic Canada to the Gulf of México to Lázaro Cárdenas, México. Stretching approximately 20,000 route miles and employing 20,000 railroaders, CPKC provides North American customers unparalleled rail service and network reach to key markets across the continent. CPKC is growing with its customers, offering a suite of freight transportation services, logistics solutions and supply chain expertise. Visit cpkcr.com to learn more about the rail advantages of CPKC. CP-IR

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SOURCE CPKC

FAQ

How many CPKC mechanical employees are covered by the new Unifor agreement?

The new collective agreement covers approximately 1,200 CPKC mechanical employees across Canada, including mechanics, labourers, diesel service attendants, and mechanical support staff.

How long is CPKC's new collective agreement with Unifor?

The new collective agreement with Unifor is a four-year agreement.

What benefits does the new CPKC-Unifor agreement include?

The new agreement includes improved wages and benefits for mechanical employees, though specific details were not disclosed in the announcement.

How many labor agreements has CPKC ratified in 2025?

CPKC has ratified two labor agreements in 2025: one with Unifor for mechanical employees and another with Teamsters Canada Rail Conference Maintenance of Way Employees Division for engineering services employees.