CPKC Locks Out TCRC Employees, Moves to Full Shut Down of Canadian Rail Network

Canadian Pacific Kansas City (CPKC) said 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.

About CPKC

Canadian Pacific Kansas City Limited (“CPKC” or the “Company”) owns and operates a transcontinental freight railway spanning Canada, the United States (“U.S.”), and Mexico. CPKC provides rail and intermodal transportation services over a network of approximately 20,000 miles, serving principal business centres across Canada, the U.S., and Mexico. The Company transports bulk commodities, merchandise, and intermodal freight. CPKC’s Common Shares trade on the Toronto Stock Exchange and New York Stock Exchange under the symbol “CP”.

Contact:

Chris de Bruyn – Investor Relations – investor@cpkcr.com – (403) 319-3591

Source: Canadian Pacific Kansas City Limited