CALGARY, AB, March 16, 2022 /PRNewswire/ - Canadian Pacific
Railway Limited (TSX: CP) (NYSE: CP) has issued 72-hour notice to
the Teamsters Canada Rail Conference (TCRC)-Train & Engine of
its plan to lock-out employees at 00:01
ET on March 20, 2022 if the
union leadership and the company are unable to come to 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 that is trying to recover from
multiple disruptions, we simply cannot prolong for weeks or months
the uncertainty associated with a potential labor disruption," said
Keith Creel, CP President and CEO.
"The world has never needed Canada's resources and an efficient
transportation system to deliver them more than it does today.
Delaying resolution would only make things worse. We take this
action with a view to bringing this uncertainty to an end."
We have been negotiating in good faith since September and over
the past week, Canadian Pacific (CP) and the TCRC leadership have
been meeting daily with federal mediators to reach a new negotiated
collective agreement in hopes of avoiding a labor disruption.
Despite those talks, our positions remain far apart.
Yesterday, CP tabled an offer that addressed a total of 26
outstanding issues between the parties, including an offer to
resolve the TCRC's key issues of wages, benefits and pensions
through final and binding arbitration.
Today, the TCRC leadership rejected CP's offer and, contrary to
public statements by TCRC spokesman Dave
Fulton that wages, benefits and pensions were the key
issues, the union continues to table additional work rule demands.
In rejecting our offer, the TCRC's proposal included an even more
onerous pension demand. The TCRC's latest position would, if
accepted, be even more destabilizing to the pension plan for all of
CP's unionized employees, not just the 10 percent who are TCRC
members.
For nearly a decade, CP has invited the TCRC to enroll its
members in a sustainable pension-sharing program, which has
benefited thousands of members of CP's other Canadian unions. The
TCRC has consistently rejected this opportunity, and has done so
again today. In fact, the union leadership has taken the successful
pension-sharing program off the table seeking to negotiate all
pension changes through collective bargaining – an unfair demand
that jeopardizes the long-term health of a pension plan that 30,000
other employees and pensioners rely on.
"We are deeply disappointed that we find ourselves in this
position," said Creel. "CP will continue to bargain in good faith
with the TCRC leadership to achieve a negotiated settlement or
enter binding arbitration. The Canadian economy could avoid
all the pain and damage of a work stoppage if the TCRC would agree
to binding arbitration, an outcome we continue to push for."
CP has commenced its work stoppage contingency plan and will
work closely with customers to achieve a smooth, efficient and safe
wind-down of Canadian operations.
TCRC 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
top earner made $209,773. Meanwhile,
in 2021, a TCRC conductor, trainperson or yardperson earned on
average $107,872 and the top earner
made $182,888. These annual earnings
far exceed the 2021 Canadian average earnings of $65,138.1 Since 2007, the TCRC members have
enjoyed a wage increase of 43 percent, which exceeds the compounded
inflation rate by nearly 20 percent.
CP has launched a fact-based information hub with materials
about negotiating history and the issues and consequences of a work
stoppage. Visit cpr.ca/TCRC2022 to learn more.
Forward looking information
This news release
contains certain forward-looking information within the meaning of
applicable securities laws relating, but not limited to, collective
bargaining between CP and its labour unions, potential work
stoppage and CP's business, operations and service. This
forward-looking information also includes, but is not limited to,
statements concerning expectations, beliefs, plans, goals,
objectives, assumptions and statements about possible future
events, conditions, and results of operations or performance.
Forward-looking information may contain statements with words or
headings such as "financial expectations", "key assumptions",
"anticipate", "believe", "expect", "plan", "will", "outlook",
"should" or similar words suggesting future outcomes.
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 North American and global economic, credit and business
conditions; risks in agricultural production such as weather
conditions and insect populations; the availability and price of
energy commodities; the effects of competition and pricing
pressures; industry capacity; shifts in market demand; changes in
commodity prices; uncertainty surrounding timing and volumes of
commodities being shipped via CP; inflation; changes in laws and
regulations, including regulation of rates; changes in taxes and
tax rates; potential increases in maintenance and operating costs;
uncertainties of investigations, proceedings or other types of
claims and litigation; labour disputes; risks and liabilities
arising from derailments; transportation of dangerous goods; timing
of completion of capital and maintenance projects; currency and
interest rate fluctuations; 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
to them, and technological changes. The foregoing list of factors
is not exhaustive. These and other factors are detailed from
time to time in reports filed by CP with securities regulators in
Canada and the United States. Reference should be made to
"Item 1A - Risk Factors" and "Item 7 - Management's Discussion and
Analysis of Financial Condition and Results of Operations -
Forward-Looking Information" in CP's annual and interim reports on
Form 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 it is possible that predictions, forecasts,
projections, and other forms of forward-looking information will
not be achieved by CP. Except as required by law, CP undertakes no
obligation to update publicly 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 the United States with direct
links to major ports on the west and east coasts. CP provides North
American customers a competitive rail service with access to key
markets in every corner of the globe. CP is growing with its
customers, offering a suite of freight transportation services,
logistics solutions and supply chain expertise. Visit cpr.ca to see
the rail advantages of CP. CP-IR
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SOURCE Canadian Pacific