TCRC-MWED ratifies new collective bargaining agreement with CPKC

Rhea-AI Summary

Canadian Pacific Kansas City (CP) announced that the Teamsters Canada Rail Conference Maintenance of Way Employees Division (TCRC-MWED) has ratified a new four-year collective agreement. The agreement, covering approximately 2,300 engineering service employees across Canada, includes improved wages and benefits.

CPKC CEO Keith Creel highlighted that the agreement was reached through collaborative negotiations and received strong support from the membership. The new contract is expected to provide long-term labor stability, enabling the company to continue serving customers and contributing to the Canadian economy efficiently and safely.

Positive

• Successful ratification of new 4-year labor agreement with engineering employees
• Strong support from union membership indicates positive labor relations
• Long-term labor stability secured for 2,300 engineering service employees
• Agreement includes wage and benefit improvements

Negative

• Increased labor costs due to improved wages and benefits package

Insights

Labor Relations Analyst

The ratification of this four-year collective agreement with TCRC-MWED represents a significant operational milestone for CPKC, particularly in the context of its post-merger integration phase. The agreement, covering 2,300 engineering service employees, is strategically timed to ensure operational continuity during a important period of network integration and efficiency optimization.

Engineering service employees are fundamental to railroad operations, responsible for maintaining track infrastructure, signals, and other critical systems. Their role is especially vital as CPKC continues to optimize its expanded network following the CP-KCS merger. The four-year duration provides a substantial window of operational predictability, enabling CPKC to focus on executing its integration strategy without the distraction of labor negotiations.

The strong ratification support suggests the terms effectively balance employee interests with operational requirements - a important factor for maintaining workforce productivity and morale. While specific wage terms aren't disclosed, the improved compensation package will likely impact operating costs. However, this should be viewed against the substantial benefits of labor stability and operational reliability, which are essential for maintaining service quality and customer relationships in the highly competitive North American rail market.

From an investor perspective, this agreement eliminates a significant operational risk factor and demonstrates CPKC's ability to maintain constructive labor relations post-merger. The timing and duration of the agreement provide a clear runway for executing strategic initiatives through 2029, supporting the company's ability to deliver on its merger synergy targets and operational efficiency goals.

CALGARY, AB, Feb. 14, 2025 /PRNewswire/ - Canadian Pacific Kansas City (TSX: CP) (NYSE: CP) (CPKC) today said that Teamsters Canada Rail Conference Maintenance of Way Employees Division (TCRC-MWED) representing engineering service employees in Canada has ratified a new four-year collective agreement.

"Working collaboratively with the Teamsters Canada Rail Conference Maintenance of Way Employees Division, we have completed a new agreement that provides improved wages and benefits to our employees," said Keith Creel, CPKC President and Chief Executive Officer. "This agreement, reached at the bargaining table and ratified with strong support among the membership, brings long-term labor stability for our engineering employees allowing us to continue our work safely and efficiently serving our customers and delivering for the Canadian economy."   

TCRC-MWED represents approximately 2,300 engineering service employees across Canada.

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

What are the key terms of CPKC's new agreement with TCRC-MWED?

The new four-year collective agreement includes improved wages and benefits for approximately 2,300 engineering service employees across Canada, providing long-term labor stability.

How many employees are covered under CPKC's new TCRC-MWED agreement?

The agreement covers approximately 2,300 engineering service employees across Canada.

When does CPKC's new collective agreement with TCRC-MWED take effect?

The agreement was ratified on February 14, 2025, establishing a new four-year term for engineering service employees.

What impact will the TCRC-MWED agreement have on CPKC's operations?

The agreement provides long-term labor stability, allowing CPKC to continue serving customers and the Canadian economy safely and efficiently.