I was recently hired as a condoctor for DME in Kansas City and I have overheard talk about new DME/CP contract negotiations. They anticipate being fully incorporated into Canadian Pacific and becoming the 5th class I in KC. Furthermore, some suspect a KCS/CP merger looms on the horizon sometime in the next decade.
How likely are these scenarios?
This specific merger has been discussed for some time, and has also been the subject of conjecture from time to time. Do not remember the specific issue, but TRAINS did a large article which speculated on the mating of each of the Class Ones, and how well or not their joining would make that particular merger. KSC+ CP t would more or less be an end-to-end merger of the two railroads; alway a more workable merger than two parallel lines…
One thing that you can be sure of, is if Mike Haverty of KCS does not think his railroad will come out in a better place, They would never aquiesce to the marriage.
Hostile Takeover? Who knows. Ultimately,IF the two roads joined, it would be a huge machine! [2c]
Technically as far as the STB is concerned the DM&E became part of a Class I railroad the moment that CP through Soo Line Corp. bought the railroad. All reporting, and other rules such as tariffs apply. Employee contracts are between the Company and the Union. Soo Line has never been part of the national negotiations.
