CPKC reaches tentative collective agreement with TCRC-MWED

Rhea-AI Summary

Canadian Pacific Kansas City (CP) has announced reaching a tentative four-year collective agreement with the Teamsters Canada Rail Conference Maintenance of Way Employees Division (TCRC-MWED), which represents approximately 2,300 engineering service employees across Canada.

The agreement, announced on January 28, 2025, marks a significant development in labor relations for the railroad company. CPKC CEO Keith Creel emphasized that the agreement benefits railroaders and their families while enabling the company to continue serving customers and contributing to the Canadian economy efficiently. The specific details of the agreement will remain confidential until ratification.

Positive

• Successful negotiation of a four-year labor agreement, reducing operational uncertainty
• Agreement covers 2,300 engineering service employees, ensuring workforce stability
• Reached through mutual negotiation, avoiding potential labor disruptions

Negative

• None.

Insights

Labor Relations Analyst

The successful negotiation of a tentative four-year agreement with the TCRC-MWED represents a significant operational win for CPKC, particularly as it comes during the critical post-merger integration period with Kansas City Southern. This labor peace with 2,300 essential engineering service employees helps ensure operational continuity across CPKC's Canadian network, which is important for the company's unique position as the only single-line rail network connecting Canada, the U.S. and Mexico.

The timing and peaceful resolution of these negotiations are particularly noteworthy for investors for several reasons. First, it demonstrates CPKC's ability to maintain positive labor relations during the complex post-merger integration phase. Second, it provides medium-term cost certainty and operational stability, which is essential for the railroad's ability to capitalize on its expanded North American network. Engineering service employees are critical to maintaining track infrastructure and ensuring safe, efficient operations - making this agreement fundamental to CPKC's core business functionality.

While specific terms remain confidential pending ratification, CEO Keith Creel's positive characterization of the agreement as "good for our railroaders and their families" suggests a balanced outcome that should support both worker satisfaction and operational efficiency. For investors, this agreement represents reduced labor relations risk and supports CPKC's ability to deliver on its post-merger synergy targets and growth opportunities across its expanded network.

CALGARY, AB, Jan. 28, 2025 /PRNewswire/ - Canadian Pacific Kansas City (TSX: CP) (NYSE: CP) (CPKC) today said that it has reached a tentative four-year collective agreement with the Teamsters Canada Rail Conference Maintenance of Way Employees Division (TCRC-MWED) representing engineering service employees in Canada.

"Working together with the TCRC-MWED, we are pleased to have reached an agreement that is good for our railroaders and their families across Canada," said Keith Creel, CPKC President and Chief Executive Officer. "With another tentative collective agreement completed at the negotiating table, we can 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.

Details of the tentative collective agreement will not be released publicly until the agreement has been ratified. 

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

View original content to download multimedia:https://www.prnewswire.com/news-releases/cpkc-reaches-tentative-collective-agreement-with-tcrc-mwed-302362319.html

SOURCE CPKC

FAQ

How long is CPKC's new tentative agreement with TCRC-MWED?

The tentative collective agreement with TCRC-MWED is for a four-year term.

How many employees are covered by CPKC's January 2025 TCRC-MWED agreement?

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

When will the details of CPKC's 2025 TCRC-MWED agreement be released?

The details will not be released publicly until the agreement has been ratified.

What worker group does the CPKC January 2025 labor agreement cover?

The agreement covers engineering service employees represented by the Teamsters Canada Rail Conference Maintenance of Way Employees Division (TCRC-MWED).