CALGARY, Alta., March 16, 2022 /PRNewswire/ – Canadian Pacific Railway Limited (TSX: CP) (NYSE: CP) has issued 72 hours notice to the Teamsters Canada Rail Conference (TCRC) – Train & Engine of its employee lockout plan at 00:01 ET to March 20, 2022 if the union leadership and the company fail to reach a negotiated settlement or agree to binding arbitration.
“For the sake of our employees, our customers, the supply chain we serve and the Canadian economy trying to recover from multiple disruptions, we simply cannot extend for weeks or months the uncertainty associated with a potential labor disruption,” said Keith Creel, President and CEO of CP. “The world never needed from Canada resources and an efficient transportation system to provide them with more than it does today. Delaying the resolution would only make matters worse. We are taking this step with a view to ending this uncertainty.”
We have been bargaining in good faith since September and over the past week Canadian Pacific (CP) and CFTC management have been meeting daily with federal mediators to reach a new negotiated collective agreement in the hope of avoiding a hiatus in work. Despite these talks, our positions remain far apart.
Yesterday, CP filed an offer that addressed a total of 26 outstanding issues between the parties, including an offer to resolve the CFTC’s major pay, benefits and pension issues through final arbitration. and enforceable.
Today, CFTC management rejected CP’s offer and, contrary to public statements by the CFTC spokesperson David Fulton wages, benefits and pensions were the main issues, the union continues to file additional demands on work rules. By rejecting our offer, the CFTC’s proposal included an even more onerous pension demand. The CFTC’s latest position, if accepted, would be even more destabilizing for the pension plan of all unionized CP employees, not just the 10% who are CFTC members.
For nearly a decade, CP has been inviting the CFTC to enroll its members in a sustainable pension splitting program, which has benefited thousands of members of CP’s other Canadian unions. The CFTC has always rejected this opportunity, and still does today. In fact, the union leadership took the successful pension splitting program off the table by seeking to negotiate all pension changes through collective bargaining – an unfair demand that puts the long-term health of a pension plan at risk. on which 30,000 other employees and retirees rely.
“We are deeply disappointed to find ourselves in this position,” Creel said. “CP will continue to negotiate in good faith with CFTC officials to reach a negotiated settlement or binding arbitration. The Canadian economy could avoid all the pain and damage of a work stoppage if the CFTC agrees to binding arbitration, an outcome we continue to push for.”
CP has launched its work stoppage contingency plan and will work closely with customers to achieve a gradual, efficient and safe shutdown of Canadian operations.
The CFTC represents approximately 3,000 locomotive engineers, conductors, train and yard workers across Canada. In 2021, a CP TCRC Locomotive Engineer earned on average $135,442 and the best income made $209,773. Meanwhile, in 2021, a CFTC conductor, trainman, or yardman earned on average $107,872 and the best income made $182,888. These annual earnings far exceed the 2021 average Canadian earnings of $65,138.1 Since 2007, CFTC members have enjoyed a 43% salary increase, which exceeds the compound inflation rate by almost 20%.
CP has launched a Factual Information Center containing documents on the history of negotiations and the issues and consequences of a work stoppage. Visit cpr.ca/TCRC2022 to learn more.
This press release contains certain forward-looking information within the meaning of applicable securities laws regarding, but not limited to, labor negotiations between CP and its unions, potential work stoppages and the business, operations and services of CP. Such forward-looking information also includes, but is not limited to, statements regarding expectations, beliefs, plans, goals, objectives, assumptions, and statements regarding possible events, conditions, and operating or performance results. future. Forward-looking information may contain statements with words or titles such as “financial expectations”, “key assumptions”, “anticipate”, “believe”, “expect”, “plan”, “will”, “outlook ‘, ‘should’ or similar words suggesting future results.
Undue reliance should not be placed on forward-looking information, as actual results may differ materially from the forward-looking information. Forward-looking information is not a guarantee of future performance. By its nature, CP’s forward-looking information involves numerous assumptions, inherent risks and uncertainties that could cause actual results to differ materially from the forward-looking information, including, but not limited to, the following factors: changes in business strategies; general economic, credit and business conditions in North America and around the world; agricultural production risks such as weather and insect populations; the availability and price of energy products; the effects of competition and pricing pressures; industry capacity; changes in market demand; changes in commodity prices; uncertainty surrounding the timing and volumes of products shipped through CP; inflation; changes in laws and regulations, including rate regulation; changes in taxes and tax rates; potential increases in maintenance and operating costs; uncertainties of investigations, proceedings or other types of claims and litigation; labor disputes; risks and liabilities arising from derailments; transport of dangerous goods; schedule for completion of capital and maintenance projects; currency and interest rate fluctuations; the effects of changes in market conditions and discount rates on the financial position of pension plans and investments; and various events that could disrupt operations, including severe weather, droughts, floods, avalanches and earthquakes, as well as security threats and governmental response thereto, and changes in technology. The foregoing list of factors is not exhaustive. These and other factors are detailed from time to time in reports filed by CP with the securities regulators of Canada and United States. Reference should be made to “Item 1A – Risk Factors” and “Item 7 – MD&A and Discussion of Financial Condition and Results of Operations – Forward-Looking Information” in CP’s annual and interim reports on Forms 10-K and 10-Q. Readers are cautioned not to place undue reliance on forward-looking information. Forward-looking information is based on current expectations, estimates and projections, and predictions, forecasts, projections and other forms of forward-looking information may not be made by CP. Except as required by law, CP undertakes no obligation to publicly update or otherwise revise any forward-looking information, whether as a result of new information, future events or otherwise.
About Canadian Pacific
Canadian Pacific is a transcontinental railway in Canada and United States with direct connections to major ports on the west and east coasts. CP offers its North American customers competitive rail service with access to key markets around the world. CP grows with its customers, offering a range of freight transportation services, logistics solutions and supply chain expertise. Visit cpr.ca to see CP rail benefits. CP-IR
SOURCE Canadian Pacific