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CPKC: 16 collective bargaining agreements in U.S. ratified, 2 additional tentative agreements reached

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CALGARY, AB, Jan. 15, 2026 Canadian Pacific Kansas City (TSX: CP) (NYSE: CP) (CPKC) today said that ...

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AI Summary

Canadian Pacific Kansas City (CPKC) successfully ratified 16 collective bargaining agreements, benefiting approximately 700 employees with increased wages. This positive development enhances workforce morale and operational efficiency, positioning CPKC favorably in a competitive labor market.

Sentiment Rationale

Historically, successful labor negotiations lead to improved operational efficiency. Similar instances have resulted in positive stock performance due to enhanced employee morale and productivity.

Trading Thesis

Buy CPK; expect short-term positive movement due to wage increases and operational stability.

Market-Moving

  • Wage increases may improve employee satisfaction and reduce turnover costs.
  • Successfully ratified agreements enhance operational stability and customer service capabilities.
  • Strong labor relations could lead to more favorable terms in future negotiations.
  • Increased wages may impact CPK’s short-term profitability but support long-term operational effectiveness.

Key Facts

  • CPKC ratified 16 new collective agreements with various U.S. unions.
  • Approximately 700 railroaders will receive increased wages under these agreements.
  • Key unions include Brotherhood of Locomotive Engineers and Brotherhood of Railway Carmen.
  • Agreements cover employees across several U.S. states including Illinois and Texas.
  • CPKC aims to support economic growth while ensuring efficient operations.

Companies Mentioned

  • Canadian Pacific Kansas City (CP): Ratification strengthens labor relations and operational stability.
  • Brotherhood of Locomotive Engineers and Trainmen (BLET): Represents 300 locomotive engineers benefiting from new agreements.
  • Brotherhood of Railway Carmen: Represents 231 carmen with improved wage terms.

Corporate Developments

This falls under 'Corporate Developments' as the ratification of collective agreements indicates solid labor relations, which is critical for operational efficiency and long-term growth.

CPKC Ratifies 16 Collective Bargaining Agreements to Bolster Workforce

Canadian Pacific Kansas City (TSX: CP, NYSE: CP, CPKC) has successfully ratified **16 tentative collective bargaining agreements** with various unions across the United States. The ratifications, announced today, will benefit approximately 700 CPKC railroaders located in multiple states, including Illinois, Indiana, Louisiana, Minnesota, Mississippi, Missouri, New York, North Dakota, Oklahoma, Texas, and Wisconsin.

Details of the Agreements

These newly ratified agreements span five years and include various wage increases, enhancing the compensation structure for CPKC employees. CEO Keith Creel expressed satisfaction with the agreements, thanking union leaders for their cooperation in reaching terms that support the workforce. "We are very pleased to see all these agreements ratified... We remain focused on serving our customers as we safely and efficiently move American business and contribute to economic growth," said Creel.

  • **One agreement** with the Brotherhood of Locomotive Engineers and Trainmen (BLET) covering approximately **300 locomotive engineers** operating trains in Illinois, Indiana, Minnesota, North Dakota, and Wisconsin.
  • **Five agreements** with the Brotherhood of Railway Carmen representing **231 carmen** on properties including Delaware & Hudson, Soo Line, and Kansas City Southern.
  • **Five agreements** ratified with the Transportation Communications Union (TCU/IAM) and the American Railway and Airway Supervisors Association (ARASA) covering roughly **108 clerks and supervisors** on various properties.
  • **Two agreements** with the National Conference of Firemen and Oilers (NCF&O) for **26 hostlers and laborers** at Soo Line and Kansas City Southern.
  • **Three additional agreements** covering **19 mechanical foremen**, **three boilermakers**, and **one sheet metal worker** across different properties.

In December, CPKC also reached **two tentative five-year agreements** with the International Brotherhood of Electrical Workers (IBEW) that represent **76 electricians**. These agreements are still subject to ratification.

Implications for the Workforce and Business

The ratification of these agreements marks a significant step forward for CPKC in strengthening its workforce and ensuring the efficient operation of its railroad services. The agreements are expected to enhance employee morale and productivity, crucial factors in maintaining competitive service delivery in the rail transport sector.

CPKC's commitment to improving working conditions and wages is likely to have positive ramifications for its operational capabilities, ultimately benefiting the company's service offerings to its customers.

About Canadian Pacific Kansas City (CPKC)

Founded with its global headquarters in Calgary, Alberta, Canada, CPKC is the first and only single-line transnational railway connecting Canada, the U.S., and Mexico. It provides unparalleled access to major ports from Vancouver to Atlantic Canada to the Gulf Coast to Lázaro Cárdenas, Mexico.

Extending approximately **20,000 route miles** and employing **20,000 railroaders**, CPKC is dedicated to offering North American customers exceptional rail service and a broad network reach across key markets. As the company continues to grow alongside its customers, it offers a comprehensive range of freight transportation services, logistics solutions, and supply chain expertise. For more information, visit cpkcr.com.

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