CN Presents Simplified Offer to TCRC to Achieve a Deal

Offer respects Duty and Rest Period Rules and is aligned with scientific fatigue management practices

MONTREAL, May 16, 2024 (GLOBE NEWSWIRE) — In an attempt to avoid a work stoppage and end the unpredictability for Canada’s supply chains, CN (TSX: CNR) (NYSE: CNI) tabled a new offer to the Teamsters Canada Rail Conference (TCRC).

The new offer remains fully compliant with the Federal Government’s Duty and Rest Period Rules (DRPR) which define the requirements related to the hours of work and rest periods for employees who are in positions designated critical to safe railway operations.

Since the beginning of bargaining in 2023, CN’s proposals have focused on modernizing the collective agreement to enhance employee safety, introducing predictable scheduling with planned consecutive days off, better work-life balance, and increased financial compensation.

As the Union would not negotiate these enhancements for a more modern agreement, CN has now tabled a revised offer within the existing parameters of the current collective agreement. This revised offer eliminates the hourly rate and scheduling proposal and continues to comply with the Duty Rest Period Rules.

Details of the New Offer
In the new offer CN will schedule days off and would pay a higher rate for any work over 10 hours in a shift with a maximum of 12 hours per shift for employees in Western Canada, which is compliant with the maximum on-duty period under the Duty and Rest Period Rules. All employees will keep their existing 10 paid leave days, their existing 10 paid medical leave days, their existing vacation allotment, their existing statutory holidays, and their rest at their home terminal. Other changes include wage increases of 3% in 2024 and 2.5% in 2025 and other monetary improvements.

Additionally, employees must comply with the Duty and Rest Period Rules by self-assessing their fitness for duty through a scientific fatigue evaluation prior to any shift, which ensures that employees evaluate their fitness for duty prior to reporting for work. Further, under the Duty and Rest Period Rules, employees cannot work more than 60 hours per 7-day period, or more than 192 hours per 28-day period. Employees must also receive a ‘reset break’ of at least two consecutive nights rest undisturbed every 7 days.

Facts:

Rest:

• By combining DRPR and existing rest provisions in collective agreements, currently conductors and locomotive engineers work approximately 160 days a year.

Wages:

• In 2023, the average conductor earned approximately $121,000
• In 2023, the average locomotive engineer earned approximately $150,000

About CN
CN is a world-class transportation leader and trade enabler. Essential to the economy, to the customers, and to the communities it serves, CN safely transports more than 300 million tons of natural resources, manufactured products, and finished goods throughout North America every year. CN’s network connects Canada’s Eastern and Western coasts with the U.S. South through an 18,800-mile rail network, CN and its affiliates have been contributing to community prosperity and sustainable trade since 1919. CN is committed to programs supporting social responsibility and environmental stewardship.

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