CN Issues Blocking Notice to Investing.com Teamsters

Rail continues to safely close Canadian rail network as parties remain apart

MONTREAL, Aug. 18, 2024 (GLOBE NEWSWIRE) — CN (TSX: CNR) (NYSE: CNI) has sent a notice to the Teamsters Canada Rail Conference (TCRC) formally informing it of its intention to impose a lockout on Canadian employees represented by the TCRC on August 22 at 12:01 a.m. ET unless a binding agreement or arbitration is reached before that date.

Despite negotiations over the weekend, no significant progress has been made and the parties remain far apart.

If an immediate and definitive resolution to the industrial conflict is not found, CN will have no choice but to continue with the gradual and progressive closure of its network, which will culminate in a blockade.

CN must continue with the progressive and planned shutdown of its network, as we remain under threat of an unpredictable strike notice. This planned shutdown helps ensure the safety of the communities in which we operate and the safety of our customers’ assets, and optimizes the restoration of the network following a work stoppage. Additional embargoes will be issued on Monday, August 19^The.

General information on the 2024 negotiations and offers
In January, CN offered TCRC a modernized agreement that improved safety, wages, and work-life balance while protecting vested rights. This offer was rejected.

The offer was then improved in April, focusing on better wages ($75/hour for machinists and $65/hour for machinists), job security, and guaranteed earnings for employees. The TCRC rejected the improved offer.

In May, CN then presented a simplified offer under the current collective agreement, with improved wages and predictable rest days, which was also rejected by TCRC.

With no way out, CN offered to voluntarily submit to binding arbitration in June. Binding arbitration is a process in which both parties authorize a mutually agreed-upon independent arbitrator to determine the terms of a settlement. It is an impartial approach that would reach a resolution while avoiding a costly disruption to supply chains, Canadian consumers, and the Canadian economy. The TCRC rejected this offer.

All information regarding the offers, including details on proposed salaries, time off and manpower availability, is publicly available here.

Current rest and salary
Rest:

• Combining the provisions on duty and rest periods (DRPR), paid sick days, personal holidays and the existing provisions on rest and holidays in collective agreements, train drivers and locomotive drivers currently work around 160 days a year.

Wages:

• In 2023, the average driver earned about $121,000, excluding pension and medical benefits.
• In 2023, the average railroad engineer earned about $150,000, not including pension and medical benefits.

About Embargoes
Railways issue embargoes when, in the opinion of the railway, actual or threatened physical or operational damage, of a temporary nature, justifies restrictions against such movements. It is particularly critical in the event of work stoppages to prevent sensitive and dangerous goods from becoming stranded on the network. Embargoes are effective within 48 hours of issuance.

Any product arriving, departing or moving within Canada by rail will not be transported during a strike. Only limited intra-yard train movements will be performed, as there are not enough certified train management crews to support intercity train movements.

If an agreement is reached or arbitration is required, CN will remove the embargoes and resume normal operations.

CN Forward-Looking Statements
Certain statements by CN included in this press release constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and Canadian securities laws. By their nature, forward-looking statements involve risks, uncertainties and assumptions. CN cautions that its assumptions may not materialize and that current economic conditions make such assumptions, while reasonable at the time they were made, subject to increased uncertainty. Forward-looking statements can be identified by the use of terminology such as believes, expects, anticipates, presumes, prospects, plans, objectives or other similar words. Forward-looking statements reflect information as of the date on which they are made. CN undertakes no obligation to update or revise any forward-looking statements to reflect future events, changes in circumstances or changes in beliefs, unless required by applicable securities laws. In the event that CN updates a forward-looking statement, no inference should be made that CN will make further updates with respect to such statement, related matters or any other forward-looking statement.

About CN
CN powers the economy by safely transporting more than 300 million tons of natural resources, manufactured products and finished goods across North America each year for its customers. With its nearly 20,000-mile rail network and associated freight services, CN connects Canada’s East and West Coasts with the U.S. Midwest and the Gulf of Mexico, contributing to sustainable commerce and the prosperity of the communities it serves since 1919.

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