May 29, 2018 Canadian Pacific Railway Labor Negotiations Update: 05/30/2018 – CP Reaches Tentative Deals with Both TCRC-T&E and IBEW, Ending Strike Canadian Pacific has reached tentative agreements with both the Teamsters Canada Rail Conference-Train & Engine (TCRC) as well as the International Brotherhood of Electrical Workers (IBEW) ending a strike that began Tuesday night. Full operations at CP are expected to resume Thursday, May 31 at 6 AM across Canada, the TCRC announced in a prepared statement. The agreements will need to be ratified by their respective members. TCRC – T&E: The TCRC, which represents more than 3,000 conductors and engineers began a strike at 10 pm ET Tuesday 5/29. On Wednesday, 5/30 CP released a press release stating they “reach a tentative four-year agreement with CP conductors and locomotive engineers and a five-year agreement with our KVR conductors and locomotive engineers, effectively ending both strikes.” “We have had the discussion that needed to take place. This is a solid step in re-establishing a positive business relationship and moving forward,” said Doug Finnson, President TCRC. IBEW: Canadian Pacific Railway and the International Brotherhood of Electrical Workers (IBEW) reached a tentative three-year deal on Tuesday night, 5/29. The International Brotherhood of Electrical Workers represents 360 signalling workers. Senior General Chairman Steve Martin expressed that while negotiations were difficult “in the end we have reached a good deal for our membership and we’re looking forward to building on the momentum of the last few days.” Odyssey will continue to monitor the situation and keep you informed of any developments. Update: 05/29/2018 – TCRC-Train & Engine and IBEW issue strike notice The Teamsters Canada Rail Conference-Train & Engine (TCRC) and the International Brotherhood of Electrical Workers (IBEW) issued notice to Canadian Pacific Railway Limited advising of their respective plans to strike at 2200 eastern time on Tuesday, May 29, 2018. In both cases, the parties have given more than the required 72-hour notice. CP will continue to meet with the TCRC and the IBEW in the hopes of reaching agreements that are in the best interests of the entire CP family, its customers, shareholders and the broader North American economy. CP has commenced its work stoppage contingency plan and will work closely with customers to ensure a smooth, efficient and safe wind down of operations. Update: 05/02/2018 – CIRB sets dates for TCRC-Train & Engine and IBEW ratification vote “Calgary, AB – Canadian Pacific Railway Limited (TSX: CP) (NYSE: CP) has been advised by the Canada Industrial Relations Board (CIRB) that voting on CP’s final proposals – for both the Teamsters Canada Rail Conference – Train & Engine (TCRC) and the International Brotherhood of Electrical Workers (IBEW) – will begin on Monday, May 14 at 9 am Eastern and close Wednesday, May 23 at noon Eastern. In the event that final offers are accepted, the potential for a work stoppage will have been averted. If the final offers are not accepted, following the announcement of the vote results, a minimum of 72 hours’ notice will need to be provided before any work stoppage, including a strike or potential company lockout, could occur. CP’s efforts have been to build on the momentum created with the patterned framework that led to the successful negotiation of long-term collective agreements on both sides of the border. There are approximately 3,000 conductors and engineers represented by the TCRC. Approximately 360 signal maintainers are represented by the IBEW. CP has launched a fact-based website with the details of the final offers presented, available here: www.cpofferinfo.ca.” Update: 4/20/2018 – CP Customer Advisory: “Labour Disruption Averted” “We reached an agreement with both the Teamsters Canada Rail Conference-Train & Engine (TCRC) and the International Brotherhood of Electrical Workers (IBEW), which averts the potential work stoppage of 12:01 am Eastern time, April 21, 2018. As such, CP’s embargoes for shipments routing to and from CP Canadian locations has been cancelled effective immediately. CP will immediately begin to execute a safe and structured start-up of its train operations in Canada.” The TCRC (Teamsters Canada Rail Conference) also released a statement confirming that the strike would not occur on 4/21. However, they clarify that the strike notice is just “withdrawn until the CIRB vote is complete, at which time all of the Union’s rights to strike are still in force”. The statement goes on to “very strongly recommend that the Membership REJECT the Company’s offers.” Full statement can be found here. Update: 4/18/2018 4:00 PM – “CP Canadian Network shutdown due to TCRC & IBEW strike” In a recent customer bulletin Canadian Pacific (CP) has “commenced and will continue to execute a safe and structured shutdown of its train operations in Canada.” An embargo application for shipments routing to and from CP Canadian locations is now in effect. This embargo applies to: All shipments originating in Canada which are billed to any Canadian or US destinations All shipments originating in the United States which are billed to any Canadian destinations The embargo can be rescinded at any time. Odyssey will continue to monitor the situation and keep you informed of any developments. 4/18/2018 1:00 PM – “Canadian Pacific Railway Ltd. Issued 72-Hour Notice of Strike by Teamsters.” Unions representing about 3,000 employees of Canadian Pacific Railway Ltd. (CP) have officially served the company with a 72-hour notice of intent to strike. On April 6th, CP employees represented by the Teamsters Canada Rail Conference – Train & Engine (TCRC) and the International Brotherhood of Electrical Workers (IBEW) voted 94.2% in favor of strike actions to meet the demands of their proposed collective bargaining agreement, a negotiation process between CP and the unions that has been underway since Jan. 29th of this year. As of Apr. 18th, the TCRC and IBEW have officially served CP with a notice of intent to strike, which will begin at 12:01 a.m. Eastern Standard Time on April 21, 2018 if an agreement is not made. The parties will meet again this morning, Apr. 18th, to continue negotiations. CP President and Chief Executive Officer Keith Creel has gone on record to say that the company is doing all they can to reach a mutually beneficial agreement between CP and the unions. In a Progressive Railroading article, Creel is quoted saying, “We have been working hard with both unions for months, and continue to meet in order to negotiate an agreement that balances the needs of these two unions with the needs of our entire workforce, our customers and our shareholders.” He went on to say, “I made labor outreach my top priority when I became CEO and I continue to focus my efforts on this key area.” According to a CP press release, CP is meeting with the IBEW later today and is presenting the union with streamlined three-year and five-year agreements for consideration. Similar plans were presented to TCRC this Monday, Apr. 16th. Creel has said, “We remain committed to achieving a win-win solution and urge the two unions to work closely with us and the federal mediators to achieve a positive outcome as soon as possible in the hours leading up to the deadline.” Odyssey will continue to monitor the situation and keep you informed of any developments.