27 April 2012

Canadian Pacific Comments on TCRC Membership Vote

Calgary Alberta - Canadian Pacific today commented on the Teamsters Canada Rail Conference (TCRC) 26 Apr 2012 announcement that the union sought a strike mandate from their members. The Company noted that discussions with the TCRC regarding changes to CP's legacy pension plan will continue under the supervision of the conciliator appointed by the Federal Minister of Labour. No work stoppage can occur until the expiration of a cooling-off period on 23 May 2012.
 
"CP has a long history of constructive relations with its unions and we are confident that we can reach a settlement with the TCRC", said Canadian Pacific President and CEO Fred Green. "It is vital to the future of the railroad that legacy pension issues are resolved. Legacy pension costs significantly impact CP's operating ratio and our ability to further fund investments that will support growth opportunities for the benefit of all CP stakeholders".
 
CP is seeking to achieve changes to legacy pension and post-retirement benefits to make them industry-comparable. CP has contributed $1.9 billion of solvency deficit contributions to its pension plan over the past three years.
 
CP has proposed a number of options for pension plan modifications for future pension recipients, none of which impacts current pensioners. Among the range of proposed amendments, some of the options provide guaranteed pension payment that is a multiple of average Canadian industrial pension payment and is comparable to what this union has already agreed to for the majority of its members at another major Canadian railway.
 
The company noted that its existing contract with the union, which represents 4,800 engineers, conductors, and rail traffic controllers, expired on 31 Dec 2011. CP has been in negotiations since early October 2011 with the union on a number of topics ranging from wages to work rule changes and pensions, all intended to further drive service, productivity, and efficiency.