CALGARY - Some 800 workers represented by the United Steelworkers union have ratified a new, five-year labour agreement with Canadian Pacfic Railway (TSX:CP)

In a joint announcement, the two sides say 87 per cent of the membership voted in favour of the deal.

The new collective agreement begins in January and allows for wage increases of three per cent in each of the next five years.

The two sides said it also reflects changes that help ensure that the CP pension plan is sustainable.

Covered in the contract between the railway and Steelworkers Local 1976 are about 800 clerical and intermodal workers.

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