CN Receives Order of Binding Arbitration
CN (TSX: CNR) (NYSE: CNI) has received an order from the Canada Industrial Relations Board (CIRB) imposing binding arbitration between the company and the Teamsters Canada Rail Conference (TCRC). The CIRB has also ordered that no further labour stoppage, including a lockout or strike, can occur during the arbitration process. This voids the recent strike notice issued by the Teamsters to CN.
The order extends the current collective agreement until a new agreement is signed. CN had been negotiating for nine months, offering improved pay, rest, schedules, and a voluntary mobile workforce. While disappointed that an agreement couldn't be reached at the bargaining table, CN is satisfied that this order ends the unpredictability affecting supply chains. The company remains focused on safely and efficiently resuming goods movement.
CN (TSX: CNR) (NYSE: CNI) ha ricevuto un ordine dal Canada Industrial Relations Board (CIRB) che impone arbitrato vincolante tra l'azienda e il Teamsters Canada Rail Conference (TCRC). Il CIRB ha anche ordinato che non possano verificarsi ulteriori interruzioni lavorative, inclusi lockout o scioperi, durante il processo di arbitrato. Ciò annulla il recente avviso di sciopero emesso dai Teamsters a CN.
L'ordine estende l'attuale contratto collettivo fino a quando non viene firmato un nuovo accordo. CN ha negoziato per nove mesi, offrendo miglioramenti nella retribuzione, nei tempi di riposo, negli orari e in una forza lavoro mobile volontaria. Anche se è delusa per non essere riuscita a raggiungere un accordo al tavolo delle trattative, CN è soddisfatta che questo ordine metta fine all'imprevedibilità che influisce sulle catene di approvvigionamento. L’azienda rimane concentrata sul ripristino sicuro ed efficiente del movimento delle merci.
CN (TSX: CNR) (NYSE: CNI) ha recibido una orden de la Junta de Relaciones Industriales de Canadá (CIRB) que impone arbitraje vinculante entre la empresa y el Teamsters Canada Rail Conference (TCRC). La CIRB también ha ordenado que no se puede llevar a cabo ninguna otra interrupción laboral, incluyendo un cierre patronal o una huelga, durante el proceso de arbitraje. Esto anula el reciente aviso de huelga emitido por los Teamsters a CN.
La orden extiende el actual acuerdo colectivo hasta que se firme uno nuevo. CN había estado negociando durante nueve meses, ofreciendo mejoras en los salarios, en los períodos de descanso, en los horarios y en una fuerza laboral móvil voluntaria. Si bien están decepcionados por no haber podido alcanzar un acuerdo en la mesa de negociaciones, CN está satisfecha de que esta orden ponga fin a la imprevisibilidad que afecta las cadenas de suministro. La empresa sigue enfocada en reanudar de manera segura y eficiente el movimiento de mercancías.
CN (TSX: CNR) (NYSE: CNI)는 캐나다 산업 관계 위원회(CIRB)로부터 구속력 있는 중재를 회사와 Teamsters Canada Rail Conference (TCRC) 간에 시행하라는 명령을 받았습니다. CIRB는 또한 중재 과정 동안 더 이상의 노동 중단, 즉 파업 또는 봉쇄가 발생할 수 없다고 명령했습니다. 이는 Teamsters가 CN에 발효한 최근의 파업 통지를 무효화합니다.
이 명령은 새로운 계약이 서명될 때까지 현재의 단체 협약을 연장합니다. CN은 9개월 동안 임금, 휴식, 일정 및 자발적인 이동 근로자 개선을 위해 협상해왔습니다. 교섭 테이블에서 합의를 도출하지 못한 것에 실망했지만, CN은 이 명령이 공급망에 영향을 미치는 예측 불가능성을 종식시킨다는 것에 만족하고 있습니다. 회사는 안전하고 효율적으로 물류 이동을 재개하는 데 집중하고 있습니다.
CN (TSX: CNR) (NYSE: CNI) a reçu un ordre de l'Office des relations industrielles du Canada (CIRB) imposant un arbitrage contraignant entre la société et le Teamsters Canada Rail Conference (TCRC). Le CIRB a également ordonné qu'aucune autre interruption des travailleurs, y compris un lock-out ou une grève, ne puisse se produire pendant le processus d'arbitrage. Cela annule l'avis de grève récent émis par les Teamsters à CN.
L'ordre prolonge l'accord collectif actuel jusqu'à ce qu'un nouvel accord soit signé. CN avait négocié pendant neuf mois, offrant des améliorations de salaire, de repos, d'horaires et d'une main-d'œuvre mobile volontaire. Bien que déçu de ne pas avoir atteint d'accord à la table des négociations, CN est satisfait que cet ordre mette fin à l'imprévisibilité affectant les chaînes d'approvisionnement. L'entreprise reste concentrée sur la reprise en toute sécurité et efficacement du mouvement des biens.
CN (TSX: CNR) (NYSE: CNI) hat einen Befehl vom Canada Industrial Relations Board (CIRB) erhalten, der bindende Schlichtung zwischen dem Unternehmen und der Teamsters Canada Rail Conference (TCRC) anordnet. Das CIRB hat zudem angeordnet, dass während des Schlichtungsverfahrens keine weiteren Arbeitsunterbrechungen, einschließlich Streiks oder Aussperrungen, stattfinden dürfen. Dies hebt die kürzlich von den Teamsters an CN gerichtete Streikankündigung auf.
Die Anordnung verlängert die aktuelle Tarifvereinbarung bis ein neuer Vertrag unterzeichnet wird. CN hatte neun Monate lang verhandelt und verbesserte Löhne, Ruhezeiten, Arbeitszeitpläne und eine freiwillige mobile Belegschaft angeboten. Obwohl CN enttäuscht ist, dass am Verhandlungstisch keine Einigung erzielt werden konnte, ist das Unternehmen zufrieden, dass dieser Befehl die Unvorhersehbarkeit, die die Lieferketten beeinträchtigt, beendet. Das Unternehmen konzentriert sich darauf, den Güterverkehr sicher und effizient wieder aufzunehmen.
- Binding arbitration order prevents further labour disruptions
- Current collective agreement extended until new agreement is signed
- End of unpredictability in supply chains
- CN can resume efficient goods movement
- Failure to reach agreement through direct negotiations
- Potential for unfavorable arbitration outcome
Insights
This binding arbitration order marks a significant development in CN's labor dispute with the Teamsters. It effectively neutralizes the immediate threat of a strike, providing short-term stability for CN's operations and the broader supply chain. However, the long-term implications remain uncertain. The arbitration process could result in terms less favorable to CN than its previous offers, potentially impacting future labor costs and operational flexibility. Investors should note that while this averts an immediate crisis, it doesn't resolve the underlying labor issues. The extension of the current collective agreement provides a temporary reprieve, but the final arbitrated agreement will be important in determining CN's labor relations and cost structure going forward. This development underscores the ongoing challenges in the rail industry's labor landscape and the potential for regulatory intervention in labor disputes.
The CIRB's intervention is a double-edged sword for CN and the broader supply chain. On one hand, it prevents immediate disruptions that a strike would have caused, maintaining the flow of goods and supporting economic stability. This is particularly important given the recent supply chain stresses. However, the arbitration process introduces its own uncertainty. The outcome could potentially impose terms that are less operationally flexible than CN's previous offers, which included improvements in scheduling and workforce mobility. For investors and stakeholders in the logistics sector, this development reduces short-term risk but introduces long-term uncertainty. The impact on CN's competitiveness and operational efficiency will depend on the arbitrator's decision, which could set precedents for future labor negotiations in the industry.
While averting a strike is generally positive for CN's immediate financial outlook, the binding arbitration introduces financial uncertainties. The arbitration outcome could potentially result in higher labor costs than CN had budgeted for, impacting future profitability. Investors should consider that while the short-term operational continuity is assured, the long-term financial implications are yet to be determined. The market may react positively to the avoidance of immediate disruption, but caution is warranted due to the unpredictable nature of arbitration outcomes. Additionally, the extended period of labor uncertainty may have already had some impact on CN's customer relationships and market share, which could affect future revenue streams. The financial impact will ultimately depend on the arbitrator's decision, balancing worker demands with the company's operational and financial considerations.
MONTREAL, Aug. 24, 2024 (GLOBE NEWSWIRE) -- CN (TSX: CNR) (NYSE: CNI) has received an order from the Canada Industrial Relations Board (CIRB) imposing binding arbitration between the Company and the Teamsters Canada Rail Conference (TCRC).
The CIRB has also ordered that no further labour stoppage, including a lockout or strike, can occur during the arbitration process. This means that the strike notice recently issued to CN by the Teamsters is now voided.
CN will comply with the order which also extends the current collective agreement until a new agreement is signed between the parties.
Over the last nine months, CN negotiated in good faith to reach a deal at the table. The Company consistently proposed offers with better pay, improved rest, more predictable schedules, and a voluntary mobile workforce.
While CN is disappointed an agreement could not be reached at the bargaining table, the Company is satisfied that this order effectively ends the unpredictability that has been negatively impacting supply chains for months.
CN remains focused on safely getting goods moving again, as efficiently as possible.
CN Forward-Looking Statements
Certain statements by CN included in this news release constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and under Canadian securities laws. By their nature, forward-looking statements involve risks, uncertainties and assumptions. CN cautions that its assumptions may not materialize and that current economic conditions render such assumptions, although reasonable at the time they were made, subject to greater uncertainty. Forward-looking statements may be identified by the use of terminology such as “believes,” “expects,” “anticipates,” “assumes,” “outlook,” “plans,” “targets,” or other similar words. Forward-looking statements reflect information as of the date on which they are made. CN assumes no obligation to update or revise forward-looking statements to reflect future events, changes in circumstances, or changes in beliefs, unless required by applicable securities laws. In the event CN does update any forward-looking statement, no inference should be made that CN will make additional updates with respect to that statement, related matters, or any other forward-looking statement.
About CN
CN powers the economy by safely transporting more than 300 million tons of natural resources, manufactured products, and finished goods throughout North America every year for its customers. With its nearly 20,000-mile rail network and related transportation services, CN connects Canada’s Eastern and Western coasts with the U.S. Midwest and the Gulf of Mexico, contributing to sustainable trade and the prosperity of the communities in which it operates since 1919.
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