CALGARY, April 13, 2018 /CNW/ - Canadian Pacific Railway
Limited (TSX: CP) (NYSE: CP) and two of its unions – the Teamsters
Canada Rail Conference – Train & Engine (TCRC) and the
International Brotherhood of Electrical Workers (IBEW) – are
currently working through the collective bargaining process.
Despite CP's best efforts, a significant gap remains between the
company and these two unions. In the event an agreement cannot be
reached, a work stoppage could occur as early as 0001 on
Saturday, April 21, 2018.
"We have been working hard with both unions for months, and
continue to meet in order to negotiate an agreement that balances
the needs of these two unions with the needs of our entire
workforce, our customers and our shareholders," said Keith Creel, CP President and CEO. "I made
labour outreach my top priority when I became CEO and I continue to
focus my efforts on this key area."
CP has reached long-term agreements with other Canadian unions,
including three that were successfully negotiated in 2017, all with
the objective of ensuring continuity of reliable and cost-effective
rail service, while being fair and equitable to CP's employees.
Specifically, CP adopted a "pattern" framework to address issues
tabled at bargaining and have successfully reached agreement
through to 2022 with: TCRC – Maintenance of Way; United Steel
Workers; and CP Police Association.
A work stoppage involving the TCRC and the IBEW will severely
impact CP's ability to continue to provide safe and efficient
freight and passenger/commuter service. All customers and
commodities would be impacted at a time when demand is soaring.
"We have connected with our freight customers and with the CEOs
of the passenger rail services that run on our line advising them
of the potential impacts," Creel said. "We understand the impact
this would have on commuters using the West Coast Express on the
Lower Mainland, Réseau de transport métropolitain in Montreal and Metrolinx in the Toronto-area. In an attempt to avoid this
inconvenience and the significant disruption to the travelling
public, CP reached out to the IBEW today to request that they allow
their members to continue to serve the railway lines on which
passenger rail service are hosted – unfortunately, it was a
request they denied."
CP and the TCRC leadership successfully negotiated a one-year
extension of the Collective Agreement in September 2017, unfortunately that agreement was
not ratified by the membership. Despite CP's best efforts to
achieve an agreement with the TCRC, the union still has essentially
108 outstanding demands to our five, equivalent to more than a
quarter billion dollars over three years, or an average increase of
24% a year over the three years to the TCRC payroll cost. CP's five
items relate to providing consistent customer service and achieving
schedule predictability for the betterment of the Canadian economy
and transportation supply chain reliability. There are
approximately 3,000 conductors and engineers represented by the
TCRC.
Approximately 360 Signal Maintainers are represented by the
IBEW. These employees protect the integrity of the railway
signal system in addition to maintaining protection devices at
crossings. Despite CP's best efforts, the IBEW still has 85
outstanding issues to our four, equivalent to an additional
$27 million over three years, or an
average increase of 25% a year over the three years. CP's four
items reflect collaboration, mutual benefit, safety, efficiency and
quality of life.
"We continue to meet and remain hopeful that fair agreements can
still be reached with both sides; agreements that identify win-win
solutions based on common ground," Creel said. "People and
safety are part of CP's core foundations and we are committed to
safe operations and a well-rested workforce is an important part of
that. We are more than open to considering scheduling and time off
options with the TCRC, and have even proposed pilot projects to do
that. However, any proposed changes need to work in concert
with our commitment to our 12,000 strong CP family, customers,
shareholders and the overall economy."
During Conciliation in March, and after both unions rejected all
company offers, both unions stated that all of their demands must
be addressed. The company provided the TCRC and IBEW with a
written proposal to enter into Voluntary Mediation/Arbitration, to
avoid a work stoppage and avoid damages to our customers, the
Canadian economy, Canadian commuters and the broader CP
family – an offer both unions declined.
Meetings with the TCRC and the IBEW are planned for next week
and CP will continue to bargain in good faith.
Forward looking information
This news release contains certain forward-looking information
within the meaning of applicable securities laws relating, but not
limited to, collective bargaining between CP and its labour unions,
potential work stoppage and CP's business, operations and service.
This forward-looking information also includes, but is not limited
to, statements concerning expectations, beliefs, plans, goals,
objectives, assumptions and statements about possible future
events, conditions, and results of operations or performance.
Forward-looking information may contain statements with words or
headings such as "financial expectations", "key assumptions",
"anticipate", "believe", "expect", "plan", "will", "outlook",
"should" or similar words suggesting future
outcomes.
Undue reliance should not be placed on forward-looking
information as actual results may differ materially from the
forward-looking information. Forward-looking information is not a
guarantee of future performance. By its nature, CP's
forward-looking information involves numerous assumptions, inherent
risks and uncertainties that could cause actual results to differ
materially from the forward-looking information, including but not
limited to the following factors: changes in business strategies;
general North American and global economic, credit and business
conditions; risks in agricultural production such as weather
conditions and insect populations; the availability and price of
energy commodities; the effects of competition and pricing
pressures; industry capacity; shifts in market demand; changes in
commodity prices; uncertainty surrounding timing and volumes of
commodities being shipped via CP; inflation; changes in laws and
regulations, including regulation of rates; changes in taxes and
tax rates; potential increases in maintenance and operating costs;
uncertainties of investigations, proceedings or other types of
claims and litigation; labour disputes; risks and liabilities
arising from derailments; transportation of dangerous goods; timing
of completion of capital and maintenance projects; currency and
interest rate fluctuations; effects of changes in market conditions
and discount rates on the financial position of pension plans and
investments; and various events that could disrupt operations,
including severe weather, droughts, floods, avalanches and
earthquakes as well as security threats and governmental response
to them, and technological changes. The foregoing list of factors
is not exhaustive. These and other factors are detailed from
time to time in reports filed by CP with securities regulators in
Canada and the United States. Reference should be made to
"Item 1A - Risk Factors" and "Item 7 - Management's Discussion and
Analysis of Financial Condition and Results of Operations -
Forward-Looking Information" in CP's annual and interim reports on
Form 10-K and 10-Q. Readers are cautioned not to place undue
reliance on forward-looking information. Forward looking
information is based on current expectations, estimates and
projections and it is possible that predictions, forecasts,
projections, and other forms of forward-looking information will
not be achieved by CP. Except as required by law, CP undertakes no
obligation to update publicly or otherwise revise any
forward-looking information, whether as a result of new
information, future events or otherwise.
About Canadian Pacific
Canadian Pacific is a transcontinental railway in Canada and the
United States with direct links to major ports on the west
and east coasts, providing North American customers a competitive
rail service with access to key markets in every corner of the
globe. CP is growing with its customers, offering a suite of
freight transportation services, logistics solutions and supply
chain expertise. Visit cpr.ca to see the rail advantages of CP.
CP-IR
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SOURCE Canadian Pacific