Teamsters Serve CN with a Strike Notice
CN (TSX: CNR) (NYSE: CNI) has been served with a 72-hour strike notice by the Teamsters Canada Rail Conference (TCRC). The Teamsters intend to strike as of 10:00 AM ET on Monday, impacting operations significantly.
Recent Developments in Negotiations
CN proactively ended the lockout of the Teamsters, following the Minister of Labour’s direction to the Canada Industrial Relations Board (CIRB) for binding arbitration between both parties. This decision highlights CN's commitment to resolving the dispute while focusing on its recovery plan to support the economy.
Despite CN's ongoing recovery efforts, the Teamsters are reportedly focused on returning to a state of disruption, which threatens to affect people and jobs nationwide. Over the past nine months, CN has engaged in good faith negotiations, consistently making serious offers aimed at improving conditions for all parties involved.
CN's Offers to the Teamsters
Throughout negotiations, CN has proposed more lucrative pay packages, enhanced rest periods, and more reliable work schedules. However, these offers have been met with resistance from the Teamsters, signaling that they may not be willing to find common ground.
Current Compensation Structure
Current compensation details reveal that in 2023, the average conductor earned approximately $121,000, while the average locomotive engineer reported earnings of about $150,000, not including additional pension and medical benefits.
Work Schedule Overview
Conductors and locomotive engineers combine various duty and rest period rules along with paid sick and personal days, resulting in approximately 160 working days per year, which speaks to the intensive nature of their roles.
Background on Negotiation Efforts
In January, CN made a modernized agreement offer that aimed to enhance safety, wages, and work/life balance, but this was refused. Subsequent offers in April included better pay rates of $75/hour for Locomotive Engineers and $65/hour for Conductors, again without acceptance from the TCRC.
In an attempt to find a resolution, CN offered a simplified proposal within the existing collective agreement framework in May, which was also turned down. Faced with ongoing deadlock, CN proposed to voluntarily submit to binding arbitration, an impartial path to resolving the dispute without disrupting supply chains and negatively impacting the Canadian economy. Unfortunately, this offer was once more rejected.
Urgency for Timely Resolution
The implications of the strike notice hinge on how swiftly the CIRB moves. A timely ruling is crucial in the national interest to prevent further adverse effects on the economy and communities across Canada.
Role of Binding Arbitration
Binding arbitration is a process whereby both parties allow a mutually agreed independent arbitrator to determine the settlement terms. This method is designed to facilitate resolution while minimizing disruption to essential services.
About CN
CN has been an integral part of the economy, safely transporting over 300 million tons of natural resources, manufactured products, and finished goods throughout North America annually. With a rail network spanning nearly 20,000 miles, CN connects diverse regions of Canada and the U.S., supporting sustainable trade and contributing to the prosperity of the communities in which it operates since its establishment in 1919.
Contact Information
Media Contacts:
Jonathan Abecassis, Director, Public Affairs and Media Relations
(438) 455-3692
media@cn.ca
Investor Relations Contacts:
Stacy Alderson, Assistant Vice-President
(514) 399-0052
investor.relations@cn.ca
Frequently Asked Questions
What is the main issue with the Teamsters and CN?
The main issue revolves around ongoing negotiations regarding wages, rest periods, and work conditions, with the Teamsters threatening to strike if an agreement is not reached.
When is the strike set to begin?
The strike is scheduled to begin at 10:00 AM ET on Monday, following a 72-hour notice issued by the Teamsters.
What has CN done to resolve the conflict?
CN has proposed multiple compensation and work agreements aimed at addressing the Teamsters' concerns, but these offers have not been accepted.
What role does the Canada Industrial Relations Board play?
The CIRB is expected to rule on the dispute, which could help expedite a resolution before further economic disruption occurs.
How does the compensation for conductors and engineers compare to industry standards?
The reported earnings for conductors and engineers at CN are competitive within the industry and include additional benefits, highlighting CN’s commitment to its workforce.
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