CPKC disappointed by TCRC';s decision to dispute Minister's direction to resume railway operations

Rhea-AI Summary

Canadian Pacific Kansas City (CPKC) expressed disappointment over the Teamsters Canada Rail Conference's (TCRC) decision to challenge the Canadian Minister of Labour's direction to resume railway operations. Following the Minister's order under section 107 of the Canada Labour Code, the Canada Industrial Relations Board (CIRB) held an urgent conference with CPKC. However, the TCRC refused to discuss service resumption and instead indicated their intention to challenge the constitutionality of the Minister's direction and the CIRB's discretion.

A follow-up conference is scheduled for 10:00 a.m. ET on Friday, Aug. 23, to hear further submissions. CPKC remains ready to resume service once ordered by the CIRB but is concerned about the delay's impact on serving the Canadian economy.

Positive

• CPKC is prepared to resume railway operations immediately upon CIRB order

Negative

• TCRC's challenge to the Minister's direction delays resumption of railway operations
• Delay in service resumption will affect CPKC's ability to serve the Canadian economy
• Uncertainty regarding the timeline for resolving the dispute and resuming operations

CALGARY, AB, Aug. 22, 2024 /PRNewswire/ - Canadian Pacific Kansas City (TSX: CP) (NYSE: CP) (CPKC) said, following the direction issued by the Canadian Minister of Labour pursuant to section 107 of the Canada Labour Code, the Canada Industrial Relations Board (CIRB) convened an urgent case management conference with CPKC at 9:00 p.m. ET tonight. CPKC was prepared to fully address the resumption of service given its obvious priority.

Unfortunately, the Teamsters Canada Rail Conference (TCRC) representing the Train and Engine division and Rail Canada Traffic Controller division refused to discuss any resumption of service, and instead indicated that they wish to make submissions to challenge the constitutionality of the Minister's direction, as well as the CIRB's discretion to proceed with any order. Another case management conference is now scheduled for 10:00 a.m. ET, tomorrow, Friday, Aug. 23 to further hear submissions by the parties.

While the Minister directed that the CIRB proceed expeditiously, any decision by the CIRB on the resumption of service will be delayed. CPKC remains prepared to resume service as soon as it is ordered to do so by the CIRB.

CPKC is disappointed by this delay, which will affect our ability to resume serving the Canadian economy. 

Forward looking information

This news release contains certain forward-looking information within the meaning of applicable securities laws in both the U.S. and Canada. This news release contains forward-looking information relating, but not limited to, collective bargaining between CPKC and its labour unions, potential work stoppage and CPKC's business, operations and service. This forward-looking information also includes, but is not limited to, statements concerning expectations, beliefs, plans, goals, objectives, assumptions and statements about possible future events, conditions, and results of operations or performance.  Forward-looking information may contain statements with words or headings such as "financial expectations", "key assumptions", "anticipate", "believe", "expect", "plan", "will", "outlook", "should" or similar words suggesting future outcomes.   

Undue reliance should not be placed on forward-looking information as actual results may differ materially from the forward-looking information. Forward-looking information is not a guarantee of future performance. By its nature, CPKC's forward-looking information involves numerous assumptions, inherent risks and uncertainties that could cause actual results to differ materially from the forward-looking information, including but not limited to the following factors: changes in business strategies; general North American and global economic, credit and business conditions; risks in agricultural production such as weather conditions and insect populations; the availability and price of energy commodities; the effects of competition and pricing pressures; industry capacity; shifts in market demand; changes in commodity prices; uncertainty surrounding timing and volumes of commodities being shipped via CPKC; inflation; changes in laws and regulations, including regulation of rates; changes in taxes and tax rates; potential increases in maintenance and operating costs; uncertainties of investigations, proceedings or other types of claims and litigation; labour disputes; risks and liabilities arising from derailments; transportation of dangerous goods; timing of completion of capital and maintenance projects; currency and interest rate fluctuations; effects of changes in market conditions and discount rates on the financial position of pension plans and investments; and various events that could disrupt operations, including severe weather, droughts, floods, avalanches and earthquakes as well as security threats and governmental response to them, and technological changes. The foregoing list of factors is not exhaustive.  These and other factors are detailed from time to time in reports filed by CPKC with securities regulators in Canada and the United States. Reference should be made to "Item 1A - Risk Factors" and "Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations - Forward-Looking Information" in CPKC's annual and interim reports on Form 10-K and 10-Q. Readers are cautioned not to place undue reliance on forward-looking information. Forward looking information is based on current expectations, estimates and projections and it is possible that predictions, forecasts, projections, and other forms of forward-looking information will not be achieved by CPKC. Except as required by law, CPKC undertakes no obligation to update publicly or otherwise revise any forward-looking information, or the foregoing assumptions and risks affecting such forward-looking information, whether as a result of new information, future events or otherwise.

About CPKC

With its global headquarters in Calgary, Alta., Canada, CPKC is the first and only single-line transnational railway linking Canada, the United States and México, with unrivaled access to major ports from Vancouver to Atlantic Canada to the Gulf of México to Lázaro Cárdenas, México. Stretching approximately 20,000 route miles and employing 20,000 railroaders, CPKC provides North American customers unparalleled rail service and network reach to key markets across the continent. CPKC is growing with its customers, offering a suite of freight transportation services, logistics solutions and supply chain expertise. Visit cpkcr.com to learn more about the rail advantages of CPKC. CP-IR

 

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SOURCE CPKC

FAQ

What is the current status of CPKC's railway operations in Canada?

CPKC's railway operations are currently suspended due to a labor dispute with the Teamsters Canada Rail Conference (TCRC). The company is awaiting a decision from the Canada Industrial Relations Board (CIRB) to resume service.

Why is CPKC (CP) unable to resume railway operations immediately?

CPKC cannot resume operations immediately because the TCRC is challenging the constitutionality of the Minister of Labour's direction to resume service and the CIRB's discretion to proceed with any order.

When is the next case management conference scheduled for CPKC (CP) and TCRC?

The next case management conference is scheduled for 10:00 a.m. ET on Friday, August 23, 2024, to hear further submissions from both parties.

How is the delay in resuming operations affecting CPKC (CP)?

The delay is affecting CPKC's ability to serve the Canadian economy, potentially impacting the company's operations and financial performance.