24 March 2009
Suspension of Company Paid ESPP Contributions
Calgary Alberta - Since 2001, CP's Employee Share
Purchase Plan (ESPP) has offered employees the opportunity to own a part of our company by purchasing shares.
Since my first note to you in October about "Working on the Railroad", I have had the opportunity to meet with many of you
in person or via teleconference and have updated you several times since then to advise on current economic forces and the actions we
are taking to manage through this extraordinary period of uncertainty.
As I mentioned in my February note, the balance of 2009 will be extremely challenging as we continue to experience further volume
declines.
While we are pursuing sustainable adjustments to our long term cost structure, the current headwinds require us to dig deeper with
immediate cost reductions.
Among the initiatives to reduce our costs, the company's match to employee ESPP contributions will be suspended effective immediately.
For employees paid on a bi-weekly and weekly basis, final employer contributions will be made on 2 and
3 Apr 2009 respectively.
For those employees paid semi-monthly, employer contributions will end 31 Mar 2009.
Those employees paid on a monthly basis will receive their final employer contribution on their March pay period.
This step is an extraordinary measure in response to a unique period and will save CP approximately $12 million annually.
This is just one of the many choices we are making in response to the current economic conditions.
RailCity will continue to profile weekly examples of cost reduction.
Again, don't wait for instructions.
Look for, act on, and share ideas for cost reduction now.
Through all of our efforts, CP will remain a key part of the North American economy and will maintain confidence in our company.
For more information on the ESPP please see http://railcity.cpr.ca/en-ca/Employee/OptionsChoices/Pages/ESPP.aspx, call Solium
directly at 1-877-380-7793, or visit their website at www.solium.com.
Fred Green President & CEO.
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