CN Receives Order of Binding Arbitration

Rhea-AI Summary

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.

Positive

• 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

Negative

• Failure to reach agreement through direct negotiations
• Potential for unfavorable arbitration outcome

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.

Contacts:

Media	Investment Community
Jonathan Abecassis	Stacy Alderson
Director, Public Affairs and	Assistant Vice-President
Media Relations	Investor Relations
(438) 455-3692	(514) 399-0052
media@cn.ca	investor.relations@cn.ca

FAQ

What is the recent CIRB order regarding CN and TCRC?

The Canada Industrial Relations Board (CIRB) has ordered binding arbitration between CN (CNI) and the Teamsters Canada Rail Conference (TCRC), prohibiting any labour stoppages during the process and voiding the recent strike notice.

How does the CIRB order affect CN's operations?

The order allows CN (CNI) to resume efficient goods movement by ending the unpredictability in supply chains caused by potential labour disruptions. It extends the current collective agreement until a new one is signed.

What were the key points of CN's negotiations with TCRC?

CN (CNI) negotiated for nine months, offering improved pay, rest, more predictable schedules, and a voluntary mobile workforce to reach a deal with the Teamsters Canada Rail Conference.

When was the CIRB order for binding arbitration between CN and TCRC issued?

The CIRB order for binding arbitration between CN (CNI) and TCRC was issued on August 24, 2024, as per the press release date.