04:26 PM EDT, 05/30/2025 (MT Newswires) -- Canadian Pacific Kansas City ( CP ) said late Friday it received an arbitration ruling to form collective bargaining agreements with the Teamsters Canada Rail Conference's Train and Engine division as well as the Rail Canada Traffic Controllers unit, effective Jan. 1, 2024, through Dec. 31, 2027.

The four-year contracts with TCRC divisions involve annual pay hikes of 3% for thousands of rail employees, according to a statement.

The new agreements will ensure labor stability at Canadian Pacific's operations in Canada, facilitating efficient and uninterrupted rail service, the company said.