CN Secures Binding Arbitration to Resolve Labor Dispute
Recently, CN (TSX: CNR) (NYSE: CNI) received a significant order from the Canada Industrial Relations Board (CIRB) that mandates binding arbitration between the Company and the Teamsters Canada Rail Conference (TCRC). This decision is intended to help resolve the ongoing labor negotiations.
Details of the Arbitration Order
The CIRB has made it clear that no further labor stoppages, including strikes or lockouts, can take place during the arbitration process. As a result, the strike notice that the Teamsters recently issued to CN has been nullified, allowing operations to continue without any interruptions.
Commitment to Compliance
CN has expressed its commitment to adhere to the CIRB's order, which also extends the current collective agreement until a new deal is reached between the involved parties. This step is designed to ensure stability during this crucial period for labor relations.
Negotiation Efforts and Outcomes
For the past nine months, CN has been engaged in good faith negotiations to reach a mutually beneficial agreement. Throughout these discussions, the Company has consistently put forward proposals that include improved pay, better rest periods, more predictable work schedules, and a voluntary mobile workforce.
Addressing Supply Chain Concerns
While CN is disappointed that an agreement could not be finalized at the bargaining table, the Company recognizes that the CIRB's arbitration order effectively reduces the unpredictability that has negatively impacted supply chains for several months. Consequently, CN is committed to safely resuming the transport of goods as efficiently as possible.
About CN
CN plays a vital role in driving the economy by safely transporting over 300 million tons of natural resources, manufactured goods, and finished products across North America each year. With a vast rail network covering nearly 20,000 miles, CN connects Canada’s Eastern and Western coasts to the U.S. Midwest and the Gulf of Mexico. This connectivity has significantly contributed to sustainable trade and the economic prosperity of the communities it serves since 1919.
Contact Information
Media Contacts
Jonathan Abecassis
Director, Public Affairs and Media Relations
(438) 455-3692
media@cn.ca
Investment Community Contacts
Stacy Alderson
Assistant Vice-President, Investor Relations
(514) 399-0052
investor.relations@cn.ca
Frequently Asked Questions
What led to the binding arbitration order for CN?
The Canada Industrial Relations Board issued the order to help resolve ongoing labor negotiations between CN and the Teamsters Canada Rail Conference.
What does the arbitration order prevent?
The order prohibits any further labor stoppages, including strikes or lockouts, during the arbitration process.
How long will the current collective agreement remain in effect?
The current collective agreement will remain in effect until a new agreement is signed by both CN and the Teamsters.
What are the main negotiation points CN has proposed?
CN has proposed improvements in pay, enhanced rest periods, more predictable work schedules, and a voluntary mobile workforce during the negotiation process.
What is CN's focus moving forward after this order?
Moving forward, CN is focused on safely resuming the movement of goods and restoring efficiency to its supply chain operations.
