CPKC reaches tentative long-term hourly collective agreements with SMART‑TD and BLET

Rhea-AI Summary

Canadian Pacific Kansas City (TSX: CP / NYSE: CP) reached tentative long‑term hourly collective agreements with SMART‑TD and BLET, consolidating 11 existing U.S. contracts into two agreements effective 2025–2034. The deals cover approximately 1,700 Train & Engine employees across 11 states and aim to modernize labor terms and improve pay and quality of life.

Combined with the Soo Line BLET ratification, these agreements would conclude negotiations for about 81% of CPKC's U.S. T&E workforce, subject to union ratification timelines.

Positive

• Long-term 2025–2034 agreements covering ~1,700 U.S. T&E employees
• Consolidation of 11 contracts into two streamlined agreements
• Covers employees across 11 U.S. states
• Would conclude negotiations for ~81% of U.S. T&E workforce when combined

Negative

• Agreements are tentative and require union ratification before becoming final

News Market Reaction – CP

+0.54%

+0.54% Session close to close

In the Apr 27 session, CP gained 0.54%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement highlights a major step toward long-term labor stability, consolidating 11 U.S. Tr...

Analysis

This announcement highlights a major step toward long-term labor stability, consolidating 11 U.S. Train & Engine contracts into two hourly agreements covering about 1,700 employees through 2034. Combined with prior updates on climate strategy, network expansion, and a US$1.2 billion debt financing, it reflects continued investment in an integrated North American railroad. Investors may watch ratification progress, any disclosed cost impacts, and upcoming Q1 2026 results for clarity on margins and operational efficiency.

Key Figures

T&E employees covered: approximately 1,700 employees Agreement term: 2025 to 2034 States covered: 11 states +5 more

8 metrics

T&E employees covered approximately 1,700 employees New hourly collective agreements across 11 U.S. states

Agreement term 2025 to 2034 Duration of each tentative hourly collective agreement

States covered 11 states Scope of U.S. network under new T&E agreements

Contracts consolidated 11 existing contracts Consolidated into two new long-term hourly agreements

U.S. T&E negotiations approximately 81% workforce Portion of U.S. T&E workforce covered if agreements ratified

2025 revenue $15.1 billion Record revenue reported in 2025 per amended 10-K/A

2025 diluted EPS $4.51 Reported diluted EPS for 2025

Debt offering size US$1.2 billion Notes issued in March 2026 via subsidiary

Historical Context

5 past events · Latest: 2026-04-01 (Neutral)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
2026-04-01	Earnings date notice	Neutral	-0.8%	Announced timing and access details for Q1 2026 earnings release and call.
2026-03-25	Proxy/AGM filing	Neutral	-1.2%	Filed notice and proxy circular for virtual-only 2026 annual meeting.
2026-03-23	Climate strategy update	Positive	+1.6%	Published Climate Insights and Mileposts highlighting emissions strategy and new locomotives.
2026-03-12	Network growth	Positive	+0.2%	Certified 14 new Site Ready locations adding 6,600+ acres of rail-served land.
2026-03-04	Debt offering	Negative	-1.8%	Announced US$1.2 billion notes issuance mainly for refinancing indebtedness.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent news events generally saw price moves that aligned with the tone of each announcement, with no clear pattern of the stock fading positive headlines.

Recent Company History

Over the last few months, CPKC has reported several corporate updates, including an upcoming Q1 2026 earnings release on April 29, 2026, proxy and AGM materials, climate strategy progress with 100 Tier 4 locomotives, expansion of Site Ready industrial locations, and a US$1.2 billion debt offering. Price reactions to these items ranged from modest gains to modest declines. Today’s labor agreements fit into a pattern of operational and capital-structure news supporting its integrated North American network.

Key Terms

collective bargaining agreements

1 terms

collective bargaining agreements regulatory

"it has reached new tentative collective bargaining agreements with the Sheet Metal"

Collective bargaining agreements are written contracts negotiated between a group of employees, usually represented by a union, and their employer that set pay, hours, benefits and workplace rules. For investors, these agreements matter because they lock in labor costs, affect operational flexibility and can influence profit margins and the risk of strikes—think of them as a multi-year operating manual that shapes a company’s expenses and stability.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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CALGARY, AB, April 24, 2026 /PRNewswire/ - Canadian Pacific Kansas City (TSX: CP) (NYSE: CP) (CPKC) today said it has reached new tentative collective bargaining agreements with the Sheet Metal, Air, Rail and Transportation Works – Transportation Division (SMART-TD) and the Brotherhood of Locomotive Engineers and Trainmen (BLET) consolidating 11 existing contracts across the company's U.S. network into two new long-term hourly agreements.

Each of the tentative agreements has a term from 2025 to 2034 and covers approximately 1,700 Train & Engine (T&E) service employees across 11 states – Illinois, Iowa, Missouri, Kansas, Oklahoma, Arkansas, Texas, Mississippi, Alabama, Tennessee and Louisiana.

"This is a significant milestone for our railroaders and our network," said Keith Creel, CPKC President and CEO. "These historic tentative agreements provide long‑term labor stability while enhancing flexibility and bringing meaningful improvements in pay and quality of life for our railroaders. Thank you to the leaders of SMART‑TD and the BLET for working with us at the bargaining table to reach this outcome that supports our railroaders and their families, while strengthening our ability to better serve our customers safely and efficiently."

The SMART‑TD agreement covers conductors, brakemen, and other train service employees, while the BLET agreement covers locomotive engineers and other T&E employees, bringing railroaders previously covered under multiple agreements into a modern, streamlined labor framework aligned with CPKC's integrated North American network.

The ratification of these two long-term hourly agreements, combined with the recently ratified Soo Line BLET agreement, would represent the conclusion of negotiations for approximately 81 percent of CPKC's U.S. T&E workforce. The Soo Line BLET agreement ratified in December 2025 is not scheduled to reopen again for collective bargaining until 2029.

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 Coast to Lázaro Cárdenas, México. Stretching approximately 20,000 route miles and employing approximately 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-long-term-hourly-collective-agreements-with-smarttd-and-blet-302753363.html

SOURCE CPKC

FAQ

What did CPKC (CP) announce about SMART‑TD and BLET on April 24, 2026?

CPKC announced tentative long‑term hourly agreements with SMART‑TD and BLET covering Train & Engine employees. According to the company, the deals consolidate 11 contracts into two agreements spanning 2025–2034 and cover roughly 1,700 U.S. T&E employees.

How many employees and states are covered by the CPKC tentative agreements (CP)?

The agreements cover approximately 1,700 Train & Engine employees across 11 U.S. states. According to the company, affected states include Illinois, Iowa, Missouri, Kansas, Oklahoma, Arkansas, Texas, Mississippi, Alabama, Tennessee and Louisiana.

What is the duration of the new CPKC (CP) labor agreements with SMART‑TD and BLET?

Each tentative agreement runs from 2025 through 2034. According to the company, the long‑term terms are intended to provide labor stability and align with CPKC's integrated North American network.

Do the CPKC (CP) agreements require ratification before taking effect?

Yes, the agreements are tentative and require union member ratification before they become final. According to the company, outcomes are subject to ratification timelines and any related procedural steps by SMART‑TD and BLET members.

How much of CPKC's U.S. T&E workforce would be covered after these agreements (CP)?

Combined with the Soo Line BLET agreement, these tentative agreements would cover about 81% of CPKC's U.S. T&E workforce. According to the company, the Soo Line agreement was ratified in December 2025 and reopens in 2029.