CALGARY,
AB, March 7, 2023 /CNW/ - Canadian Pacific
(NYSE: CP) (TSX: CP) ("CP") announced today the ratification of a
new collective agreement with the Brotherhood of Locomotive
Engineers and Trainmen representing hundreds of CP and Kansas City
Southern ("KCS") locomotive engineers and trainmen in U.S. Midwest
locations, which will take effect upon the consummation of the
proposed CP-KCS combination, which remains subject to receipt of
regulatory approval by the U.S. Surface Transportation Board
("STB").
The new collective agreement includes CP employees on the
Dakota, Minnesota & Eastern
("DM&E") South territory in Iowa, Illinois, Missouri and Minnesota, as well as KCS employees in
Kansas and Missouri. This agreement, ratified by BLET
members this month, provides higher pay and scheduled time off
compared to national agreements on a majority of the other Class 1
railways.
The BLET agreement and an earlier collective agreement with
SMART-TD representing KCS conductors in Kansas and Missouri, ratified last year, (which will also
take effect following the STB approval of the CP-KCS combination),
further demonstrates CP's commitment to reaching new collective
agreements that will enable a future CPKC to enhance service across
the combined railroad's vital north-south corridor, increase
competition and allow for future growth.
"These hourly agreements improve pay and quality of life for our
employees by providing more scheduled time off, something national
agreements typically don't, while creating the operational
flexibility needed to deliver better service to our customers,"
said Keith Creel, CP President and
CEO. "These innovative agreements will create predictable schedules
for conductors and engineers and empower us to attract and retain
the most talented railroaders in the industry as we successfully
serve our customers with, pending regulatory approval, a combined
CPKC connecting Canada, the U.S.
and Mexico."
CP's proposed combination with KCS remains subject to regulatory
approval by the STB. An STB decision is expected in first quarter
of 2023.
Forward looking
information
This news release contains certain forward looking statements
and forward looking information (collectively, "FLI") to provide CP
shareholders and potential investors with information about CP, KCS
and their respective subsidiaries and affiliates, which FLI may not
be appropriate for other purposes. FLI is typically identified by
words such as "anticipate", "expect", "project", "estimate",
"forecast", "plan", "intend", "will", "target", "believe", "likely"
and similar words suggesting future outcomes or statements
regarding an outlook. All statements other than statements of
historical fact may be FLI.
Although we believe that FLI is reasonable based on the
information available today and processes used to prepare it, such
statements are not guarantees of future performance and you are
cautioned against placing undue reliance on FLI. By its nature, FLI
involves a variety of assumptions, which are based upon factors
that may be difficult to predict and that may involve known and
unknown risks and uncertainties and other factors which may cause
actual results, levels of activity and achievements to differ
materially from those expressed or implied by FLI, including, but
not limited to, the following: the approval of the CP-KCS
transaction by the United States Surface Transportation Board, the
realization of anticipated benefits and synergies of the CP-KCS
transaction, and the timing thereof; the anticipated labour
synergies of the CP-KCS transaction and timing thereof, the success
of integration plans; the focus of management time and attention on
the CP-KCS transaction and other disruptions arising from the
CP-KCS transaction; changes in business strategy and strategic
opportunities; estimated future dividends; financial strength and
flexibility; debt and equity market conditions, including the
ability to access capital markets on favourable terms or at all;
cost of debt and equity capital; the ability of management of CP,
its subsidiaries and affiliates to execute key priorities,
including those in connection with the CP-KCS transaction; general
Canadian, U.S., Mexican and global social, economic, political,
credit and business conditions; risks associated with agricultural
production such as weather conditions and insect populations; the
availability and price of energy commodities; the effects of
competition and pricing pressures, including competition from other
rail carriers, trucking companies and maritime shippers in
Canada, the U.S. and Mexico; North American and global economic
growth; industry capacity; shifts in market demand; changes in
commodity prices and commodity demand; uncertainty surrounding
timing and volumes of commodities being shipped; inflation;
geopolitical instability; changes in laws, regulations and
government policies, including regulation of rates; changes in
taxes and tax rates; potential increases in maintenance and
operating costs; changes in fuel prices; disruption in fuel
supplies; uncertainties of investigations, proceedings or other
types of claims and litigation; compliance with environmental
regulations; labour disputes; changes in labour costs and labour
difficulties; risks and liabilities arising from derailments;
transportation of dangerous goods; timing of completion of capital
and maintenance projects; sufficiency of budgeted capital
expenditures in carrying out business plans; services and
infrastructure; the satisfaction by third parties of their
obligations; currency and interest rate fluctuations; exchange
rates; effects of changes in market conditions and discount rates
on the financial position of pension plans and investments; trade
restrictions or other changes to international trade arrangements;
the effects of current and future multinational trade agreements on
the level of trade among Canada,
the U.S. and Mexico; climate
change and the market and regulatory responses to climate change;
ability to achieve commitments and aspirations relating to reducing
greenhouse gas emissions and other climate-related objectives;
anticipated in-service dates; success of hedging activities;
operational performance and reliability; customer and other
stakeholder approvals and support; regulatory and legislative
decisions and actions; the adverse impact of any termination or
revocation by the Mexican government of Kansas City Southern de
Mexico, S.A. de C.V.'s Concession;
public opinion; various events that could disrupt operations,
including severe weather events, such as droughts, floods,
avalanches and earthquakes, and cybersecurity attacks, as well as
security threats and governmental response to them, and
technological changes; acts of terrorism, war or other acts of
violence or crime or risk of such activities; insurance coverage
limitations; material adverse changes in economic and industry
conditions, including the availability of short and long-term
financing; and the pandemic created by the outbreak of COVID-19 and
its variants, and resulting effects on economic conditions, the
demand environment for logistics requirements and energy prices,
restrictions imposed by public health authorities or governments,
fiscal and monetary policy responses by governments and financial
institutions, and disruptions to global supply chains.
We caution that the foregoing list of factors is not exhaustive
and is made as of the date hereof. Additional information about
these and other assumptions, risks and uncertainties can be found
in reports and filings by CP with Canadian and U.S. securities
regulators, including any prospectus, material change report,
management information circular or registration statement that have
been or will be filed in connection with the transaction. Reference
should be made to "Risk Factors" and "Management's Discussion and
Analysis of Financial Condition and Results of Operations – Forward
Looking Statements" in CP's annual and interim reports on Form 10-K
and 10-Q. Due to the interdependencies and correlation of these
factors, as well as other factors, the impact of any one
assumption, risk or uncertainty on FLI cannot be determined with
certainty.
Except to the extent required by law, we assume no obligation to
publicly update or revise any FLI, whether as a result of new
information, future events or otherwise. All FLI in this news
release is expressly qualified in its entirety by these cautionary
statements.
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. CP provides 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