CN Requests Arbitration to Resolve Labour Conflict

MONTREAL, Aug. 09, 2024 (GLOBE NEWSWIRE) – In light of the Canada Industrial Relations Board's (CIRB) recent decision, CN (TSX: CNR) (NYSE: CNI) is formally appealing to the Minister of Labour for intervention under section 107 of the Canada Labour Code. The railway company aims to mitigate the economic repercussions of a prolonged labour conflict, which has seen no resolution despite multiple negotiation attempts. CN warns that without significant progress or binding arbitration, it will initiate a phased shutdown of its operations, starting with embargoes on hazardous goods, leading to a potential lockout at 00:01 Eastern Time on August 22nd. Since the start of the year, CN has presented four proposals to the Teamsters Canada Rail Conference (TCRC), addressing wages, rest periods, and labour availability while adhering to government regulations. CN asserts that none of its proposals compromised safety standards. A notable offer made in January aimed to modernize the existing agreement, enhancing work-life balance and safeguarding safety and acquired rights, but was rejected by the TCRC. CN emphasizes that its approach is impartial and seeks to resolve the conflict without causing significant disruptions to supply chains or the broader Canadian economy. The company remains committed to transparency, providing detailed information about its offers, including wage and rest period proposals, to the public. Should a settlement or arbitration occur, CN has pledged to lift its embargoes and restore normal operations, signaling a willingness to resolve the conflict amicably.