-- Canadian Pacific Kansas City (CP.TO) last week announced tentative collective bargaining agreements with two unions; the Sheet Metal, Air, Rail and Transportation Works - Transportation Division, (SMART-TD) and the Brotherhood of Locomotive Engineers and Trainmen (BLET), that consolidate 11 contracts into two streamlined hourly agreements covering about 1,700 T&E (train and engine) employees.
Each agreement runs to 2034, providing nearly a decade of labor stability across a significant portion of CPKC's U.S. operations, notes RBC analyst Walter Spracklin and James McGarragle.
The new agreement model reduces work rule segregation and yields a more productive workforce and operational efficiencies, CPKC told RBC. With most of the railway's U.S. network now on hourly agreements, management expects network-wide standardization to unlock incremental operational savings, Spracklin and McGarragle write.
Combined with the previously ratified Soo Line BLET agreement (December 2025, not reopening until 2029), these deals would cover ~81% of CPKC's U.S. T&E workforce upon ratification, they add.
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