Canadian Pacific Kansas City (CPKC) announced that it has reached tentative long‑term hourly 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). The two new agreements consolidate 11 existing U.S. contracts and will run from 2025 to 2034, covering roughly 1,700 train‑and‑engine employees in 11 states: Illinois, Iowa, Missouri, Kansas, Oklahoma, Arkansas, Texas, Mississippi, Alabama, Tennessee and Louisiana.
The SMART‑TD agreement includes a 32.5 % wage increase over its life, with the first increase effective July 1 2025. It also guarantees all employees at least two consecutive rest days per work week. Ratification of the agreements is scheduled to take place between April 29 and May 21 2026, after which the contracts will become binding.
By consolidating 11 contracts into two modern hourly agreements, CPKC is streamlining labor coverage and reducing administrative complexity. The agreements cover 81 % of the company’s U.S. train‑and‑engine workforce, a critical step in integrating the workforce and operations that followed the 2023 merger with Kansas City Southern. The new framework is designed to enhance operational flexibility, improve pay and quality‑of‑life benefits, and support the company’s broader strategy of delivering reliable, single‑line service across Canada, the United States and Mexico.
Keith Creel, CPKC President and CEO, said, "This is a significant milestone for our railroaders and our network. 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 agreements are expected to deliver tangible benefits for CPKC’s operations. Long‑term labor stability reduces the risk of future disruptions, while the wage increase and rest‑day provisions are likely to improve employee satisfaction and retention. The consolidation of contracts also positions the company to better control labor costs and align its workforce structure with its integrated North American network, supporting ongoing efforts to enhance operational efficiency and cost control across the merged entity.
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