CN Initiates Lockout Amidst Negotiation Challenges
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CN Initiates Lockout Amidst Negotiation Challenges
CN (TSX: CNR) (NYSE: CNI) has announced a formal lockout of its employees represented by the Teamsters Canada Rail Conference (TCRC). This decision took effect following the TCRC’s lack of response to CN's latest offer, which aimed to avert a significant work disruption. The lockout commenced early on a specified date after the union failed to engage in discussions regarding CN's proposals.
The Latest Offer and Its Implications
CN's recent offer included enhancements to employee wages and adjustments to working hours. By ensuring that the hours of service in the collective agreement align with federally mandated rest provisions, more predictable work schedules could be implemented. CN also suggested a pilot project to test hourly rates and scheduled shifts to enhance the work environment for its employees. The company believes that this framework would provide better predictability and safety for their workforce.
Negotiation History: A Timeline
Over the past several months, CN has been engaged in negotiations with the TCRC, demonstrating a commitment to reaching an agreement that benefits both the employees and the organization. Throughout this period, CN has made multiple proposals aimed at improving pay, rest, and overall work conditions. Unfortunately, at each step, the Teamsters have not displayed the necessary urgency in advancing negotiations.
Key Proposals Made to the TCRC
In January, CN presented a modernized agreement that focused on increased safety measures, better wages, and enhancements to work-life balance, while also protecting the rights acquired over the years. This offer was subsequently turned down by the union. Following this, CN put forth a stronger proposal in April, featuring better wages (75$/hour for Locomotive Engineers and 65$/hour for Conductors) and greater job security, which was also declined.
In May, CN then simplified its offer within the framework of existing agreements, proposing better wages and predictable time off, yet this suggestion too was rebuffed. In an effort to move forward, CN suggested submitting to binding arbitration in June, allowing for an impartial arbitrator to settle disputes fairly and avoiding disruption to supply chains and the economy. However, this offer was similarly rejected by the TCRC.
Current Employment Conditions
As it stands, conductors and locomotive engineers are working approximately 160 days a year due to the rules surrounding duty and rest periods, along with paid sick days and personal leave provisions included in their collective agreements. These employees are experiencing an average earnings rate that reflects their critical roles within the company.
Wage Information
For the year, the average earnings for a conductor reached about $121,000, alongside their pension and medical benefits. Similarly, locomotive engineers had an approximate average earning of $150,000 within the same timeframe, also excluding benefits.
About CN and Its Operations
CN plays a significant role in bolstering the economy by safely transporting over 300 million tons of varied goods annually across North America. With an extensive rail network comprising nearly 20,000 miles, CN's operations link Eastern and Western Canada with the U.S. Midwest and the Gulf of Mexico, vital for promoting sustainable trade and supporting community prosperity.
Company Contacts
For further inquiries regarding media or investment matters, CN provides contact information for their respective departments:
Media Contact: Jonathan Abecassis, Director of Public Affairs and Media Relations, (438) 455-3692, email: media@cn.ca
Investment Contact: Stacy Alderson, Assistant Vice-President, Investor Relations, (514) 399-0052, email: investor.relations@cn.ca
Frequently Asked Questions
What triggered the lockout by CN?
The lockout was initiated due to the TCRC's lack of response to CN's final offer during negotiations, which prompted CN to take this action to maintain operational integrity.
What were the main improvements proposed by CN?
CN proposed enhanced wages, better work schedules, and a pilot project aimed at improving hourly rates and scheduled shifts.
How has CN handled negotiations with the TCRC?
CN negotiated in good faith over several months, making multiple serious proposals to improve conditions but finding no reciprocation from the TCRC.
What are the current average earnings for employees?
Conductors earn approximately $121,000, and locomotive engineers earn around $150,000 annually, not including additional benefits.
What does CN do to support the economy?
CN safely transports a vast range of goods across its extensive rail network, significantly contributing to sustainable trade and local community growth.
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