The company and the Canadian Auto Workers (CAW), which represents mechanical services employees, issued separate statements that said they reached a tentative contract settlement that will be sent to union members for ratification.
Canadian Pacific said this process is expected to conclude within three weeks.
Both sides said details of the deal will be released following ratification.
"The agreement enjoys the unanimous endorsement of the CAW-CP Rail master bargaining committee. CP Rail local union leadership will come in to Montreal from across the country to review the new agreement early next week, before going on to a series of nationwide ratification meetings," the union said in a statement.
The company has rail lines across Canada and in the upper Midwest and northeastern United States.
The CAW and Canadian National Railway Co , Canada's biggest railroad, reached a tentative contract agreement on Jan. 24, averting a strike. (Reuters)
