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CN Rail Releases Update of Negotiations with TCRC

May 29, 2017

CN Rail has release the following update pertaining to the negotiations with TCRC.

The TCRC issued a strike notice today, putting them in a position to strike as early as 0400 hours EDT Tuesday May 30, 2017.

The parties however will continue to negotiate with the assistance of a federally appointed mediator, as long as necessary in order to reach a fair agreement before the strike deadline. We are also taking additional reasonable steps to avoid a disruption by offering binding arbitration with a neutral arbitrator chosen by the parties or appointed by the Federal Government.  We remain confident that we can achieve that goal. However, if we are unable to come to an agreement with the TCRC before the strike deadline, you should consider this Labour Update as a notice of Force Majeure.  
 
This time around replacing 3000 conductors is an enormous undertaking. With the demographic retirement shift in the last few years; if there were to be a work stoppage, we would not have enough qualified non-union personnel to run the Canadian network on our railroad. The Canadian rail operation would stop while the US network and the non rail-terminal operations (Intermodal, Autoport, Transload) would continue with the inventory they would have on hand.
 
As you can appreciate, these extraordinary circumstances are beyond CN’s reasonable control.  We will keep you informed of material developments in our continuing negotiations and as to the duration of the Force Majeure event, if it does arise.
KWE Canada will continue to monitor the situation.