The new collective agreement begins in January 2013 and allows for wage increases of 3% percent in each of the next five years. It also reflects changes that help ensure the CP pension plan is sustainable for employees, current retirees and CP.

"The members voted overwhelmingly in favor of the contract, especially given it provides good wage and benefit improvements," said Steven Hadden, president of USW Local 1976.

"CP is pleased with this positive outcome as it includes provisions for productivity and efficiency enhancements," said Peter Edwards, CP vice president of human resources and industrial relations.

The current contract was due to expire December 31, 2012.