CPKC reaches tentative collective agreement with Unifor

Rhea-AI Summary

Canadian Pacific Kansas City (CP) has announced reaching a tentative four-year collective agreement with Unifor, representing approximately 1,200 mechanical employees in Canada. The agreement covers mechanics, labourers, diesel service attendants, and mechanical support staff.

CPKC's President and CEO Keith Creel emphasized the collaborative nature of the negotiations, highlighting the agreement's benefits for employees and their families while maintaining customer service and supporting the Canadian economy. The specific details of the agreement remain undisclosed pending ratification.

Positive

• Successful negotiation of a four-year labor agreement with Unifor
• Agreement ensures labor stability for mechanical operations in Canada
• Maintains continuity of service for customers and operations

Negative

• None.

Insights

Labor Relations Expert

The successful negotiation of a tentative four-year collective agreement between CPKC and Unifor represents a significant milestone in maintaining operational stability for North America's newest Class I railroad. The agreement, covering 1,200 mechanical employees in Canada, is particularly noteworthy given the critical timing in CPKC's post-merger integration phase.

The mechanical workforce covered by this agreement forms the backbone of CPKC's operational reliability. These employees are responsible for maintaining the rolling stock and ensuring the railroad's extensive fleet meets safety and performance standards. A stable labor agreement with this group is important for maintaining efficient operations across CPKC's expanded network following the CP-KCS merger.

The successful negotiation without any work stoppage or public discord suggests a constructive approach from both parties, which is especially important given the recent history of labor challenges in North American railroads. While the specific terms remain undisclosed pending ratification, the four-year duration provides extended stability and predictability for both operational planning and financial forecasting.

From an investor perspective, this agreement mitigates a significant operational risk factor. Labor disruptions in the railroad industry can have cascading effects on revenue, customer relationships and market share. The peaceful resolution and CEO Keith Creel's positive comments indicate a balanced agreement that likely addresses both employee needs and operational efficiency requirements.

CALGARY, AB, Jan. 27, 2025 /PRNewswire/ - Canadian Pacific Kansas City (TSX: CP) (NYSE: CP) (CPKC) today said it has reached a tentative four-year collective agreement with Unifor representing approximately 1,200 employees at CPKC in Canada.

"We are pleased to have reached a tentative collective agreement at the negotiating table with our mechanical employees in Canada," said Keith Creel, CPKC President and Chief Executive Officer. "By working collaboratively together with Unifor, we have reached an agreement benefiting our employees and their families while continuing to serve the needs of our customers and keeping the Canadian economy moving forward."  

Unifor represents mechanics, labourers, diesel service attendants and mechanical support staff.

Details of the tentative collective agreement are not being released pending ratification of the new agreement. 

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 employees are covered by the new Unifor agreement?

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

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

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

When will the details of CPKC's Unifor agreement be released?

The details of the collective agreement will be released after the ratification process is completed.

What types of workers are represented by Unifor at CPKC?

Unifor represents mechanics, labourers, diesel service attendants, and mechanical support staff at CPKC in Canada.