CN Issues Lockout Notice to Teamsters
August 18 2024 - 8:05PM
CN (TSX: CNR) (NYSE: CNI) has issued notice to the Teamsters Canada
Rail Conference (TCRC) formally advising them of its intention to
lockout Canadian TCRC-represented employees on Aug. 22 at 00:01 ET
unless an agreement or binding arbitration is achieved before that
time.
Despite negotiations over the weekend, no
meaningful progress has occurred, and the parties remain very far
apart.
Unless there is an immediate and definite
resolution to the labour conflict, CN will have no choice but to
continue the phased and progressive shutdown of its network which
would culminate in a lockout.
CN must continue with the progressive and
planned shutdown of its network, as we remain under the threat of
an unpredictable strike notice. This planned shut down helps to
ensure the safety of the communities in which we operate and the
safety of our customers’ goods, and to optimize the network’s
recovery following a labour disruption. Additional embargoes will
be issued on Monday August 19th.
Background on 2024 Negotiations and
OffersIn January, CN offered the TCRC a modernized
agreement that improved safety, wages, and work/life balance while
protecting acquired rights. This offer was refused.
The offer was then improved in April with a
focus on better wages (75$/hour for Locomotive Engineers and
65$/hour for Conductors), job security, and guaranteed earnings for
employees. The TCRC refused the improved offer.
In May, CN then presented a simplified offer
within the framework of the existing collective agreement with
improved wages and predictable days off, which the TCRC also
refused.
In the absence of a path forward, CN offered to
voluntarily submit to binding arbitration in June. Binding
arbitration is a process where both parties empower a mutually
agreed upon independent arbitrator to determine the terms of a
settlement. It is an impartial approach that would achieve a
resolution while avoiding a costly disruption to supply chains,
Canadian consumers, and the Canadian economy. The TCRC refused this
offer.
All of the information regarding the offers,
including details on the proposed wages, rest, and labour
availability, is available publicly here.
Current Rest and WagesRest:
- By combining Duty and Rest Period
Rules (DRPR), paid sick days, personal leave days, and existing
rest and vacation provisions in their collective agreements,
conductors and locomotive engineers currently work approximately
160 days a year.
Wages:
- In 2023, the average conductor
earned approximately $121,000, not including pension and medical
benefits.
- In 2023, the average locomotive
engineer earned approximately $150,000, not including pension and
medical benefits.
About EmbargoesRailroads issue
embargoes when, in the judgement of the railroad, an actual or
threatened physical or operational impairment, of a temporary
nature, warrant restrictions against such movements. It is
particularly critical in the event of labor disruption to prevent
sensitive and dangerous goods to be stranded on the network. The
embargoes are effective within 48 hours of being issued.
Any product coming to, leaving, or moving within
Canada on rail will not be transported during a work stoppage. Only
limited train movements within yards will be executed as there are
not enough certified management train crews to ensure intercity
train movements.
Should a settlement be reached, or arbitration
be agreed to, CN will remove its embargoes and resume normal
operations.
CN Forward-Looking Statements
Certain statements by CN included in this news release constitute
“forward-looking statements” within the meaning of the United
States Private Securities Litigation Reform Act of 1995 and under
Canadian securities laws. By their nature, forward-looking
statements involve risks, uncertainties and assumptions. CN
cautions that its assumptions may not materialize and that current
economic conditions render such assumptions, although reasonable at
the time they were made, subject to greater uncertainty.
Forward-looking statements may be identified by the use of
terminology such as “believes,” “expects,” “anticipates,”
“assumes,” “outlook,” “plans,” “targets,” or other similar words.
Forward-looking statements reflect information as of the date on
which they are made. CN assumes no obligation to update or revise
forward-looking statements to reflect future events, changes in
circumstances, or changes in beliefs, unless required by applicable
securities laws. In the event CN does update any forward-looking
statement, no inference should be made that CN will make additional
updates with respect to that statement, related matters, or any
other forward-looking statement.
About CNCN powers the economy
by safely transporting more than 300 million tons of natural
resources, manufactured products, and finished goods throughout
North America every year for its customers. With its nearly
20,000-mile rail network and related transportation services, CN
connects Canada’s Eastern and Western coasts with the U.S. Midwest
and the Gulf of Mexico, contributing to sustainable trade and the
prosperity of the communities in which it operates since 1919.
Contacts:
Media |
Investment Community |
Jonathan Abecassis |
Stacy Alderson |
Director, Public Affairs
and |
Assistant Vice-President |
Media Relations |
Investor Relations |
(438) 455-3692media@cn.ca |
(514)
399-0052investor.relations@cn.ca |
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