CN – Labour Negotiations with TCRC Update

Dear customers,

Axxess would like to inform you about the update of the labour negociations with TCRC.

As per the message received from CN rail of May the 29th :

Dear Customers and Supply Chain Partners,

As you know from our previous Labour Update, CN is currently in collective bargaining with the Teamsters Canada Rail Conference (“TCRC”), which represents our CN conductors and yard coordinators on the CN mainline in Canada.

The TCRC issued a strike notice on Saturday May 27th, putting them in a position to strike at 0400 hours EDT Tuesday May 30, 2017. However, both parties have been in active negotiations throughout the weekend and today with the assistance of a federally appointed mediator. We are also taking additional reasonable steps to avoid a disruption by offering binding arbitration with a neutral arbitrator chosen by the parties or appointed by the Federal Government.

We will continue to work with the TCRC-CTY in order to reach a fair agreement before the strike deadline. We remain confident that we can achieve that goal.

With the demographic retirement shift we have experienced over the last several years, if there were to be a work stoppage, the task of replacing 3000 conductors would not be a feasible undertaking as we simply do not have enough qualified non-union personnel to run the Canadian network on our railroad. Accordingly, if the labor conflict is not resolved by the aforementioned deadline, the Canadian rail operation will stop while CN’s US network and the Canadian non rail-terminal operations (Intermodal, Autoport, Transload) will continue non rail activities with the inventory they would have on hand.

We will keep you informed of material developments in our continuing negotiations.

Thank you for your business and your continuing partnership.

Sincerely,
Jean-Jacques Ruest
Executive Vice-President and Chief Marketing Officer

If you have any questions concerning this situation, please contact the Axxess International Freight Department.

Sincerely,

Benoit Lacelle

International Transports Director

Benoit.lacelle@axxessintl.com

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