The arbitrator's award caps pension growth and the new pension accrual rate for future hires, the Calgary, Alberta-based railway said. The three-year deal is retroactive to January 2012.
Unionized workers staged a nine-day strike at CP Railway earlier this year, shutting down operations across Canada, before the government issued back-to-work legislation.
Talks broke down over CP's plan to cut pension funding by 40 percent, the union had said at the time.
CP also said that the International Brotherhood of Electrical Workers had ratified a new five-year agreement, which begins Jan. 1, 2013. (Reuters)