Canadian Pacific Advances Labor Stability With New Tentative Agreement

Canadian Pacific Kansas City Limited CP has reached a new tentative five-year collective agreement with the Brotherhood of Locomotive Engineers and Trainmen, strengthening labor stability across its U.S. network. The company is increasing wages and introducing more flexible work rules for approximately 300 locomotive engineers on the Soo Line property operating trains in Illinois, Indiana, Minnesota, North Dakota and Wisconsin. These changes reinforce its commitment to supporting its workforce while sustaining reliable operations across key Midwest routes.

The agreement is likely to strengthen the company’s ability to deliver safe, efficient service for customers over the long term, advancing business and economic growth.

CP also advanced its broader labor strategy by securing 13 additional tentative five-year agreements with various U.S. unions last week. These pending agreements position the company to maintain stronger workforce certainty at a time when network fluidity and service performance remain essential for competitive supply-chain operations.

The company continues to strengthen its role as the first single-line transnational railway connecting Canada, the United States and México. As the company expands its network reach and service offerings, it is building long-term labor stability to support ongoing growth, enhance productivity and contribute to economic activity across North America.

Share Price Performance

Despite such tailwinds, CP shares have underperformed by 4.4% over the past year, as compared with the Transportation - Rail industry’s 3.3% fall.

Zacks Rank

CP currently has a Zacks Rank #4 (Sell).

Stocks to Consider

Investors interested in the Zacks Transportation sector may consider Expeditors International of Washington EXPD and SkyWest SKYW.

EXPD currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

EXPD has an expected earnings growth rate of 2.3% for the current year.  The company has an encouraging earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 13.94%.

SKYW also sports a Zacks Rank #1.

SkyWest has an expected earnings growth rate of 33% for the current year. The company has an encouraging earnings surprise history. Its earnings topped the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 21.2%.

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This article originally published on Zacks Investment Research (zacks.com).

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