CN Moves Forward with Lock Out
August 22 2024 - 12:05AM
CN (TSX: CNR) (NYSE: CNI) has formally locked out employees
represented by the Teamsters Canada Rail Conference (TCRC) as of
Aug. 22 at 00:01 ET, after the union did not respond to another
offer by CN in a final attempt to avoid a labour disruption.
This offer improved wages and would have seen
employees work less days in a month by aligning hours of service in
the collective agreement with federally mandated rest provisions.
The offer also proposed a pilot project for hourly rates and
scheduled shifts on a portion of the network as CN continues to
believe this is a better and more predictable framework for our
employees.
Without an agreement or binding arbitration, CN
had no choice but to finalize a safe and orderly shutdown and
proceed with a lockout.
Over the last nine months, CN has negotiated in
good faith. The Company consistently proposed serious offers, with
better pay, improved rest, and more predictable schedules. The
Teamsters have not shown any urgency or desire to reach a deal that
is good for employees, the company and the economy.
We urge the Teamsters to engage in these
negotiations with the urgency and importance that this situation
requires.
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 $150,000, not
including pension and medical benefits.
Background on 2024 Negotiations and
OffersIn January, CN offered the TCRC a modernized
agreement that improved safety, wages, and work/life balance while
protecting acquired rights. This offer was refused.
The offer was then improved in April with a
focus on better wages (75$/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.
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 |
Canadian National Railway (TSX:CNR)
Historical Stock Chart
From Sep 2024 to Oct 2024
Canadian National Railway (TSX:CNR)
Historical Stock Chart
From Oct 2023 to Oct 2024