CALGARY,
AB, Aug. 22, 2024 /PRNewswire/
-- Canadian Pacific Kansas City (TSX: CP) (NYSE: CP) (CPKC)
said today it has locked out employees who are members of the
Teamsters Canada Rail Conference (TCRC) – Train and Engine
(T&E) division effective 00:01 Eastern
Time on Aug. 22.
That will be followed by the lock out of employees who are
members of the TCRC – Rail Traffic Controller (RCTC) division
effective 00:01 Mountain Time on
Aug. 22.
Throughout nearly a year of negotiations, CPKC has remained
committed to doing its part to avoid this work stoppage. CPKC has
bargained in good faith, but despite our best efforts, it is clear
that a negotiated outcome with the TCRC is not within reach. The
TCRC leadership continues to make unrealistic demands that would
fundamentally impair the railway's ability to serve our customers
with a reliable and cost-competitive transportation service.
At this time, the responsible path forward for the union, the
company, our customers, the Canadian economy and North American
supply chains and the public interest is for TCRC and CPKC to
engage in binding arbitration to resolve all outstanding disputes.
Binding arbitration is an effective, reasonable and fair process
that ultimately has been used many times in the past to resolve
disputes with this union. CPKC reiterates its standing offer to
resolve this matter through binding arbitration. Acceptance of that
offer by the TCRC would immediately end this work stoppage and
mitigate further harm and disruption to supply chains and our
economy.
CPKC has an excellent history of successful collective
bargaining with its many unions. Unfortunately, the TCRC leadership
has repeatedly demonstrated this type of behaviour, which
ultimately has required federal intervention in some form in nine
of the 10 rounds of collective bargaining negotiations since 1993.
By contrast, over the same period, we have had 36 rounds of
negotiations with four other unions in Canada, and only one work stoppage.
We fully understand and appreciate what this work stoppage means
for Canadians and our economy. CPKC is acting to protect
Canada's supply chains, and all
stakeholders, from further uncertainty and the more widespread
disruption that would be created should this dispute drag out
further resulting in a potential work stoppage occurring during the
fall peak shipping period. Delaying resolution to this labour
dispute will only make things worse.
For the TCRC – T&E division, the company has focused on
negotiating a three-year status-quo contract renewal with
competitive wage increases that are consistent with recent
settlements with other railway unions. That proposal has no work
rule changes. In fact, we presented an enhanced final offer to
avoid a work stoppage that includes: enhanced wages that exceed
inflation, an engineers' guaranteed extra board, increased shift
differentials, and resetting rest only at the home terminal, among
other items that the TCRC negotiating committee requested. The only
item we wish to negotiate remains reasonable adjustments to the
timing of held-away from home pay that resets the negotiated
buffers that existed before Transport Canada implemented work rest
rule changes last year, that by default eliminated the buffer. The
status quo-style offer fully complies with new regulatory
requirements for rest and does not in any way compromise
safety.
For the TCRC - RCTC division, CPKC has proposed a renewed
agreement with the rail traffic controllers that would deliver
competitive wage increases.
The TCRC - T&E represents CPKC's roughly 3,200 locomotive
engineers, conductors and train and yard workers, and the TCRC -
RCTC represents approximately 80 rail traffic controllers, all in
Canada.
Working closely with customers, CPKC has executed a safe and
structured shutdown of its train operations across Canada. This will enable CPKC to safely and
efficiently resume full rail operations across the entire network
once the work stoppage ends.
Visit the TCRC update page on our web site for ongoing
updates.
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