CUSTOMER ADVISORY

Dear Customer,

CP has issued following update to the industry:

"CPKC and the Teamsters Canada Rail Conference (TCRC) leadership met again between May 15 and 21, 2024, with the assistance of federal mediators in an effort to achieve renewed collective agreements for our Train and Engine (T&E) and Rail Traffic Controller (RCTC) employees. Regrettably, and despite our best efforts, no progress was made. Additional bargaining dates have not been scheduled at this time.

Although yesterday marked the expiration of the mandatory 21-day “cooling off” period under the Canada Labour Code, the Federal Minister of Labour’s referral to the Canada Industrial Relations Board (CIRB) regarding the maintenance of activities means that a legal strike or lockout cannot occur until the CIRB renders a decision. We recognize that this referral has created challenging uncertainty for all stakeholders regarding the timing of a potential work stoppage on our Canadian rail network. While it remains unclear how long it will take for the CIRB to issue a decision, based on precedent, it is unlikely the parties will be in a position to initiate a legal strike or lockout before mid-July or later.

Submissions from CPKC, the TCRC and other stakeholders were due yesterday. We understand the CIRB has received a significant number of submissions that it will need to review and consider. The CIRB process is moving forward. A case management conference is now scheduled for early next week. The CIRB has given CPKC and the TCRC until May 31, 2024, to file replies.

CPKC remains firmly committed to negotiating renewed agreements to avoid a work stoppage that would be detrimental to the interests of all stakeholders, including our employees, their families, our customers and supply chains across North America and beyond. Unfortunately, it is clear the TCRC leadership does not share that commitment. Instead, the TCRC appears determined to go down the path of a reckless, economically damaging strike that can and should be avoided.

CPKC has done everything it can to restore certainty and predictability for all our employees, their families and our supply chains. We have proposed to the TCRC that we both agree to resolve this labour dispute through binding arbitration. Our offer was refused. This uncertainty could be resolved today if the TCRC would simply agree to binding arbitration.

We have asked the TCRC the following:

• Why can’t we avoid the unnecessary disruption and harm a work stoppage would cause to millions of Canadians and the thousands of workers in countless industries across global supply chains, and the damage to Canada’s reputation as a reliable trading partner? This course of action is unquestionably harmful to the interests of all parties and stakeholders, and Canada’s national interest.

• Why choose the needless path of a work stoppage when we all know that the ultimate outcome is binding arbitration? Let’s agree today to resolve this matter through binding arbitration.

CPKC has made two distinct offers to the TCRC, both of which provide significant benefits for our employees and fully comply with new regulatory requirements for rest. They do not in any way compromise safety. To say or suggest otherwise is patently false.

The TCRC is aware of the offers and agreements made with other unions across the CPKC network, including other hourly agreements, and must know that the proposals it has put forth as part of these negotiations are unreasonable and unachievable.

We remain committed to keeping all stakeholders updated as this process unfolds and will continue to provide regular updates.

Access all our TCRC Bargaining Updates online here."

We continue to monitor the status of continued negotiations and will provide further updates as new information is made available.

Sincerely,

HENSALL GLOBAL LOGISTICS