Saturday, May 31, 2025
Canadian Pacific Kansas City (CPKC) today announced the successful conclusion of a key labour relations milestone. An independent arbitrator has finalized new collective bargaining agreements with the Teamsters Canada Rail Conference (TCRC), covering the Train and Engine (T\&E) division as well as the Rail Canada Traffic Controllers (RCTC) division.
Following extensive mediation efforts and the arbitration process, Arbitrator William Kaplan issued a binding decision that sets the terms for new four-year contracts with both TCRC units. These agreements come after months of negotiations aimed at securing long-term labour stability and improved working conditions for thousands of employees across Canada.
The TCRC – T\&E division includes approximately 3,200 locomotive engineers, conductors, and train and yard personnel essential to CPKC’s everyday rail operations across Canada. Meanwhile, the TCRC – RCTC division comprises about 80 rail traffic controllers, specialists who play an essential role in managing and directing rail traffic safely and efficiently on Canadian tracks.
The agreements, which take effect from January 1, 2024, to December 31, 2027, provide for annual wage increases of 3% for members in both bargaining units. Notably, the arbitrator’s award is final and binding and does not require further ratification by union members, ensuring a smooth transition to the updated contracts.
These newly ratified agreements complement earlier labour accords reached this year between CPKC and several other unions representing thousands of mechanical, engineering, clerical, and intermodal workers across Canada. Together, these multi-year contracts help solidify a foundation of labour peace, ensuring uninterrupted and reliable rail services for Canadian customers and industries.
Labour stability is crucial for CPKC as it continues to serve as a major North American freight railway, connecting Canada, the United States, and Mexico through an integrated network. These agreements support CPKC’s commitment to providing safe, efficient, and dependable rail transportation while fostering positive working relationships with its employees.
Forward-Looking Statements and Cautionary Notes
This announcement includes forward-looking statements and information as defined by securities regulations in both Canada and the United States. Such statements include CPKC’s expectations, plans, and projections regarding the collective bargaining agreements and their anticipated impacts on operations. Phrases like “anticipates,” “expects,” “believes,” “plans,” “may,” “could,” and other similar terms are commonly used to indicate forward-looking information.
These forward-looking statements are based on current assumptions and expectations shaped by CPKC’s historical experience and interpretation of trends, including anticipated legal and regulatory developments and the company’s ongoing relationship with TCRC.
However, the actual results may deviate considerably due to a range of potential risks and uncertainties. These factors include, but are not limited to, economic conditions across North America and globally, potential changes in laws and regulations, labour disputes, and other unforeseen circumstances. The list of risks is not exhaustive, and additional risks may be detailed in CPKC’s public filings with securities regulators in Canada and the U.S.
Investors and readers are advised to consult the “Risk Factors” and “Forward-Looking Information” sections included in CPKC’s annual Form 10-K filings and quarterly Form 10-Q reports, which can be accessed through SEDAR+ and EDGAR.
CPKC cautions against placing undue reliance on forward-looking statements, as they reflect current expectations that are inherently uncertain. Except where legally required, the company does not undertake any obligation to update or revise these statements in response to new information, future events, or other developments.
Conclusion
By securing these comprehensive, multi-year collective agreements with critical railway labour groups, CPKC reinforces its dedication to maintaining operational stability and supporting its workforce. These agreements provide a clear framework for collaboration and growth as CPKC continues to advance its role as a vital player in North America’s transportation infrastructure.
