CALGARY,
AB, Aug. 9, 2024 /CNW/ - Canadian Pacific
Kansas City (TSX: CP) (NYSE: CP) (CPKC) today said it will issue
notice to the Teamsters Canada Rail Conference (TCRC) – Train and
Engine (T&E) division and TCRC - Rail Traffic Controller (RCTC)
division of its plan to lock out employees at 00:01 ET on Aug. 22
if union leadership and the company are unable to come to a
negotiated settlement or agree to binding interest arbitration.
CPKC is committed to continuing good faith negotiation
throughout.
The decision to issue a lockout notice comes after the Canada
Industrial Relations Board (CIRB) on Friday issued its decision
determining that no services need to be maintained during a railway
strike or lockout in order to protect Canadian public health and
safety. The CIRB also ordered a 13-day extension of the cooling off
period which ends on Aug. 22.
Following the expiration of the cooling off period, a legal strike
or lockout involving the TCRC – T&E or TCRC - RCTC could
occur.
All stakeholders want an end to this needless uncertainty as
rapidly as possible so that we can continue serving the North
American economy. Stability could be restored today if the TCRC
would accept CPKC's offer to resolve the current labour dispute
through binding interest arbitration.
If no resolution is reached during bargaining through the
extended cooling off period, and the TCRC continues to refuse
binding interest arbitration, CPKC will have no choice but to take
this action. CPKC is acting to protect Canada's supply chains, and all those who
depend on them, from the more widespread disruption that would be
created should a work stoppage occur during the fall peak shipping
period. Delaying resolution to this dispute only makes things
worse, causing more disruption and damage to Canada's international reputation as a
reliable trading partner.
CPKC provides this public notice to mitigate uncertainty and
give our customers and supply chains proper time to plan for a safe
and orderly shutdown of railway operations. As part of those
preparations, CPKC will issue an embargo for all toxic by
inhalation (TIH) dangerous goods traffic to allow this traffic to
safely exit the rail network prior to a work stoppage. Other
embargoes will be issued during the cooling off period, as
necessary.
CPKC remains committed to doing its part to avoid a work
stoppage. In response to opposition from TCRC leadership, CPKC has
advised the union representing conductors and locomotive
engineers that we will conditionally withdraw the offer
for a new modernized, time-based collective agreement. That
time-based agreement proposal was intended to address the union's
concerns related to work and time off scheduling, while allowing
significant wage increases and additional customer service
flexibilities.
CPKC will focus on a status quo-style contract renewal covering
three years with competitive wage increases that are consistent
with recent settlements with other railway unions and maintains the
status quo for all work rules. 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 also proposed a renewed
agreement with the rail traffic controllers which would deliver
competitive wage increases.
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 Canadian Pacific