CALGARY,
AB, May 16, 2024 /PRNewswire/ - Canadian
Pacific Kansas City (TSX: CP) (NYSE: CP) (CPKC) today published the
following update on collective bargaining with the Teamsters Canada
Rail Conference (TCRC):
CPKC and the TCRC leadership will resume meeting on May 17, 2024 with the assistance of federal
mediators in an effort to achieve new collective agreements for our
Train and Engine (T&E) and Rail Traffic Controller (RCTC)
employees.
As we have said since these negotiations began, CPKC is firmly
committed to the collective bargaining process and our objective
remains to negotiate renewed agreements that are in the best
interests of our employees, their families, our customers, the
Canadian economy and North
America's supply chains.
We recognize that the Federal Minister of Labour's referral to
the Canada Industrial Relations Board (CIRB) has created
uncertainty regarding the timing of a potential work stoppage and
corresponding interruption of rail service on our Canadian network.
While it remains unclear how long it will take for the CIRB to
issue a decision, this is what we know today:
- The CIRB has requested submissions from CPKC and the TCRC as
well as other interested stakeholders by May
21, 2024. The parties will have until May 31, 2024 to file replies.
- A legal strike or lockout cannot occur until the CIRB renders a
decision. Notice (72 hours) pursuant to the Canada Labour
Code is required before any legal strike or lockout could
begin.
- Recognizing our supply chains require certainty, now more than
ever, CPKC has proposed to the TCRC that both parties agree on the
services that should be maintained in the event of a strike or
lockout. We believe this would eliminate the need for the CIRB
referral process and bring much needed clarity regarding the timing
of any potential strike or lockout.
- If no maintenance of services agreement is reached, based on
precedent, it is unlikely the parties will be in a position to
initiate a legal strike or lockout within the next 60 days.
- On Wednesday, CPKC voluntarily offered to enter binding
arbitration to avoid a work stoppage, however, the TCRC declined.
We are committed to keeping all stakeholders updated as this
process unfolds and will provide updates at least every two weeks
or more frequently as necessary.
Forward looking information
This news release
contains certain forward-looking information within the meaning of
applicable securities laws in both the U.S. and Canada. This news release contains
forward-looking information relating, but not limited to,
collective bargaining between CPKC and its labour unions, potential
work stoppage and CPKC'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, CPKC'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 CPKC; 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 CPKC 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 CPKC'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 CPKC. Except as required by law, CPKC undertakes
no obligation to update publicly or otherwise revise any
forward-looking information, or the foregoing assumptions and risks
affecting such forward-looking information, whether as a result of
new information, future events or otherwise.
About CPKC
With its global headquarters in
Calgary, Alta., Canada, CPKC is the first and only single-line
transnational railway linking Canada, the United
States and México, with unrivaled access to major ports from
Vancouver to Atlantic Canada to the Gulf of México to
Lázaro Cárdenas, México. Stretching approximately 20,000 route
miles and employing 20,000 railroaders, CPKC provides North
American customers unparalleled rail service and network reach to
key markets across the continent. CPKC is growing with its
customers, offering a suite of freight transportation services,
logistics solutions and supply chain expertise. Visit cpkcr.com to
learn more about the rail advantages of CPKC. CP-IR
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SOURCE CPKC