CN Presents Simplified Offer to TCRC to Achieve a Deal
CN (CNI) has presented a new offer to the Teamsters Canada Rail Conference (TCRC) aiming to prevent work stoppages and stabilize Canada's supply chains. This offer, compliant with the Federal Government’s Duty and Rest Period Rules (DRPR), focuses on employee safety, predictable scheduling, work-life balance, and increased compensation. The revised offer includes:
- Scheduled days off.
- Higher pay for work over 10 hours per shift, capped at 12 hours.
- Wage increases of 3% in 2024 and 2.5% in 2025.
- Maintenance of existing paid leave, medical leave, vacation, and statutory holidays.
Employees must self-assess their fitness for duty through scientific fatigue evaluations, and cannot work more than 60 hours per 7-day period or 192 hours per 28-day period, with a mandatory 'reset break' every 7 days.
In 2023, the average conductor earned $121,000, while the average locomotive engineer earned $150,000. The offer aims to enhance employee satisfaction and operational predictability.
- Scheduled days off for employees.
- Higher pay for work over 10 hours per shift.
- Wage increases of 3% in 2024 and 2.5% in 2025.
- Maintenance of existing paid leave days and medical leave days.
- Maintenance of existing vacation allotment and statutory holidays.
- Enhanced compliance with Federal Government's Duty and Rest Period Rules.
- Focus on employee safety and predictable scheduling.
- Improved work-life balance for employees.
- Elimination of the hourly rate and scheduling proposal from the previous offer.
- The revised offer is constrained within the existing parameters of the current collective agreement.
- to a maximum of 12 hours per shift, potentially affecting overall productivity.
Insights
CN's revised offer to the Teamsters Canada Rail Conference (TCRC) aims to avoid a work stoppage by aligning closely with the Federal Government’s Duty and Rest Period Rules (DRPR). This compliance ensures that safety standards are upheld, which is critical for maintaining operational stability and avoiding disruptions to Canada's supply chains. From a labor relations perspective, the proposal's focus on predictable scheduling and better work-life balance could potentially improve employee satisfaction and retention. However, the elimination of the hourly rate and scheduling proposal suggests a compromise by CN, which may not fully meet the union's expectations for modernization. The necessity for employees to self-assess their fitness for duty introduces an additional layer of responsibility, ensuring that employees are well-rested and fit to work, potentially reducing the risk of accidents.
The financial implications of CN's revised offer include wage increases of
This revised offer by CN has broader implications for the logistics and transportation market in Canada. By ensuring compliance with DRPR and focusing on employee well-being, CN is positioning itself as a responsible and forward-thinking employer. This stance may enhance its reputation in the market, potentially attracting better talent and improving overall operational efficiency. Additionally, the stability offered by predictable scheduling and rest periods can lead to more reliable service for customers, thereby strengthening CN's market position. However, the lack of modernization in the collective agreement could be seen as a missed opportunity to innovate and adapt to future industry challenges.
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
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.
Contacts:
| Media | Investment Community |
| Jonathan Abecassis | Stacy Alderson |
| Director, Public Affairs and | Assistant Vice-President |
| Media Relations | Investor Relations |
| (438) 455-3692 media@cn.ca | (514) 399-0052 investor.relations@cn.ca |
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