Teamsters Serve CN with a Strike Notice
August 23 2024 - 1:30PM
CN (TSX: CNR) (NYSE: CNI) has been served with a 72-hour strike
notice by the Teamsters Canada Rail Conference (TCRC). The
Teamsters intend to strike as of 10:00 AM ET on Monday, August 26,
2024.
CN proactively ended the lockout of the
Teamsters on August 22, following the Minister of Labour’s
direction to the Canada Industrial Relations Board (CIRB) to impose
binding arbitration between both parties.
While CN is focused on its recovery plan to get
back to powering the economy, the Teamsters are focused on
returning to the picket line and shutting down the economy,
impacting people and jobs across the country.
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.
This latest development confirms that the
Teamsters never took negotiations seriously and that they had no
desire to reach a deal.
The impacts of this notice will depend on the
timing of the CIRB. It is in the national interest of Canada that
the CIRB rule quickly, before even more harm is caused.
Current Rest and
WagesWages:
- In 2023, the average conductor
earned approximately $121,000, not including
pension and medical benefits.
- In 2023, the average locomotive
engineer earned approximately $150,000, not
including pension and medical benefits.
Rest:
- By combining Duty and Rest Period
Rules (DRPR), paid sick days, personal leave days, and existing
rest and vacation provisions in their collective agreements,
conductors and locomotive engineers currently work
approximately 160 days a year.
Background on 2024 Negotiations and
OffersIn January, CN offered the TCRC a modernized
agreement that improved safety, wages, and work/life balance while
protecting acquired rights. This offer was refused.
The offer was then improved in April with a
focus on better wages (75$/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) 455-3692 |
(514) 399-0052 |
media@cn.ca |
investor.relations@cn.ca |
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