Important Railway Update

In our ongoing communication with you, we wanted to provide the latest press release from CPKC concerning the ongoing negotiations involving CPKC, CN and the Teamsters Canada Rail Conference.

As we receive more information, we will continue to update you.

UPDATE ON TCRC COLLECTIVE BARGAINING NEGOTIATIONS

May 16, 2024

CALGARY, AB, May 16, 2024 /CNW/ – Canadian Pacific Kansas City (TSX: CP) (NYSE: CP) (CPKC) today published the following update on collective bargaining with the Teamsters Canada Rail Conference (TCRC):

CPKC and the TCRC leadership will resume meeting on May 17, 2024 with the assistance of federal mediators in an effort to achieve new collective agreements for our Train and Engine (T&E) and Rail Traffic Controller (RCTC) employees.

As we have said since these negotiations began, CPKC is firmly committed to the collective bargaining process and our objective remains to negotiate renewed agreements that are in the best interests of our employees, their families, our customers, the Canadian economy and North America’s supply chains.

We recognize that the Federal Minister of Labour’s referral to the Canada Industrial Relations Board (CIRB) has created uncertainty regarding the timing of a potential work stoppage and corresponding interruption of rail service on our Canadian network. While it remains unclear how long it will take for the CIRB to issue a decision, this is what we know today:

• The CIRB has requested submissions from CPKC and the TCRC as well as other interested stakeholders by May 21, 2024. The parties will have until May 31, 2024 to file replies.
• A legal strike or lockout cannot occur until the CIRB renders a decision. Notice (72 hours) pursuant to the Canada Labour Code is required before any legal strike or lockout could begin.
• Recognizing our supply chains require certainty, now more than ever, CPKC has proposed to the TCRC that both parties agree on the services that should be maintained in the event of a strike or lockout. We believe this would eliminate the need for the CIRB referral process and bring much needed clarity regarding the timing of any potential strike or lockout.
• If no maintenance of services agreement is reached, based on precedent, it is unlikely the parties will be in a position to initiate a legal strike or lockout within the next 60 days.
• On Wednesday, CPKC voluntarily offered to enter binding arbitration to avoid a work stoppage, however, the TCRC declined. 

We are committed to keeping all stakeholders updated as this process unfolds and will provide updates at least every two weeks or more frequently as necessary.