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CP Customer Advisory: Labour Update - April 11, 2018

: Transport

Canadian Pacific Rail Prepares Stakeholders For Possible Labour Disruption April 21st 2018-04-16

Canadian Pacific Rail (CPR) has issued the following bulletin to stakeholders:
As you know, CP and two of its Unions – the Teamsters Canada Rail Conference – Train & Engine (TCRC) and the International Brotherhood of Electrical Workers (IBEW) – are currently working through the collective bargaining process. We understand the importance of railway service to you, our customers, and to other participants in the supply chain and thus wanted to take this opportunity to provide information and clarity on the current situation.
Despite CP’s best efforts, a significant gap remains between us and these unions.  Talks are ongoing, and we remain optimistic that we can come to an agreement in the very near future.  However, in the event an agreement cannot be reached, a work stoppage could occur as early as 0001 on Saturday, April 21, 2018.

In the attached Fact Sheet, you will find more detailed information, and below are the context we wish to share with you:
  • CP CEO Keith Creel made labour outreach his first priority once he became CEO. Employee engagement, outreach and transparent communications have been integral to that effort.
  • In order to avoid service disruption, and in an effort to ensure that CP can continue to provide reliable and cost effective railway service, CP has been and continues to be committed to fair, equitable and early bargaining, with both the TCRC and IBEW.
  • Given the challenging winter, increased demand across commodities and struggles for others in the transportation supply chain, the environment is such that there is no latent capacity in the system and recovery from a work stoppage, of any length, will be prolonged.
  • We had a successful 2017 with our Unions, negotiating a number of long-term pattern agreements ahead of expiry. These agreements centered on a common vision that was in the best interests of the entire CP family, our customers and our shareholders – it is this progressive model we are looking to replicate in 2018 and beyond.   
  • We have an obligation to pay all employees fairly and to ensure wages and other terms and conditions of employment are consistent across the Company – essentially, in fairness, we must make decisions that serve the interests of our 12,000 employees, not a select few.  
During Conciliation in March, and after both Unions rejected all Company offers, both Unions stated that all of their demands must be addressed.
The Company provided both Unions with a written proposal to enter into Voluntary Mediation/Arbitration, to avoid a work stoppage and ultimately avoid a major service disruption to the economy. Both Unions advised they were not prepared to sign the Agreement that would avoid a work disruption.
Currently, further meetings with the TCRC and the IBEW are planned for the week of April 16, 2018 and CP will continue to bargain in good faith.
For further questions, please contact your account manager and thanks for your patience and understanding during this time.

We remain committed to delivering for you.

John Brooks
Senior Vice-President and Chief Marketing Officer
Source: CPR
Because intermodal capacity by rail is already fairly tight, any disruption or diminution of service by CP will have an inevitable and deleterious effect on movements from the West Coast where CPR centres its operations.
Milgram will inform our clientele as soon as there is any change in status of these negotiations.


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