CPKC reaches tentative collective agreement with United Steelworkers

Rhea-AI Summary

Canadian Pacific Kansas City (CP) has announced reaching a tentative four-year collective agreement with the United Steelworkers (USW), representing approximately 600 clerical and intermodal employees in Canada. This marks CP's third tentative agreement in Canada this year.

CPKC President and CEO Keith Creel emphasized that the agreement benefits railroaders and their families while enabling the company to continue serving customers efficiently and supporting Canadian economic growth. The specific details of the agreement will remain confidential until ratification.

Positive

• Third successful labor agreement reached in Canada this year
• Four-year agreement provides labor stability
• Agreement covers 600 employees, ensuring operational continuity

Negative

• None.

Insights

Labor Relations Analyst

This tentative agreement with the United Steelworkers represents a significant strategic achievement for CPKC, marking their third successful labor negotiation in Canada this year. The four-year term, if ratified, provides extended operational stability for a critical segment of CPKC's workforce - the 600 clerical and intermodal employees who play an essential role in the company's day-to-day operations.

The timing and succession of these agreements demonstrate CPKC's proactive approach to labor relations, particularly important following the complex integration process after the CP-KCS merger. By securing multiple agreements early in 2025, CPKC is effectively de-risking its operational environment and strengthening its competitive position in the North American rail market.

The agreement's significance extends beyond immediate labor stability. It indicates healthy industrial relations in CPKC's Canadian operations, which is particularly noteworthy given the challenging labor environment in the transportation sector. This positive momentum could provide CPKC with a competitive advantage in operational reliability and customer service, potentially supporting volume growth and market share gains in the highly competitive North American rail market.

CALGARY, AB, Feb. 5, 2025 /PRNewswire/ - Canadian Pacific Kansas City (TSX: CP) (NYSE: CP) (CPKC) today said it has reached a tentative four-year collective agreement with United Steelworkers (USW) representing clerical and intermodal employees in Canada.

"We are very pleased to have reached another collective agreement at the bargaining table, our third tentative agreement this year in Canada," said Keith Creel, CPKC President and Chief Executive Officer. "Working together with the United Steelworkers, we've come to a tentative agreement that is good for our railroaders and their families. With this and other recent agreements, we can continue our work safely and efficiently serving our customers, enabling growth and prosperity in the Canadian economy."

USW represents approximately 600 employees in 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

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SOURCE CPKC

FAQ

What is the duration of CPKC's new collective agreement with United Steelworkers?

The tentative collective agreement with United Steelworkers is for a four-year term.

How many employees are covered under CPKC's new USW agreement?

The agreement covers approximately 600 clerical and intermodal employees in Canada represented by United Steelworkers.

How many collective agreements has CP reached in Canada in 2025?

This is CPKC's third tentative collective agreement reached in Canada in 2025.

When will the details of CPKC's USW agreement be made public?

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