CNR Canadian National Railway Company

CN (TSX: CNR) (NYSE: CNI) has issued notice to the Teamsters Canada Rail Conference (TCRC) formally advising them of its intention to lockout Canadian TCRC-represented employees on Aug. 22 at 00:01 ET unless an agreement or binding arbitration is achieved before that time.

Despite negotiations over the weekend, no meaningful progress has occurred, and the parties remain very far apart.

Unless there is an immediate and definite resolution to the labour conflict, CN will have no choice but to continue the phased and progressive shutdown of its network which would culminate in a lockout.

CN must continue with the progressive and planned shutdown of its network, as we remain under the threat of an unpredictable strike notice. This planned shut down helps to ensure the safety of the communities in which we operate and the safety of our customers’ goods, and to optimize the network’s recovery following a labour disruption. Additional embargoes will be issued on Monday August 19th.

Background on 2024 Negotiations and OffersIn January, CN offered the TCRC a modernized agreement that improved safety, wages, and work/life balance while protecting acquired rights. This offer was refused.

The offer was then improved in April with a focus on better wages (75$/hour for Locomotive Engineers and 65$/hour for Conductors), job security, and guaranteed earnings for employees. The TCRC refused the improved offer.

In May, CN then presented a simplified offer within the framework of the existing collective agreement with improved wages and predictable days off, which the TCRC also refused.

In the absence of a path forward, CN offered to voluntarily submit to binding arbitration in June. Binding arbitration is a process where both parties empower a mutually agreed upon independent arbitrator to determine the terms of a settlement. It is an impartial approach that would achieve a resolution while avoiding a costly disruption to supply chains, Canadian consumers, and the Canadian economy. The TCRC refused this offer.

All of the information regarding the offers, including details on the proposed wages, rest, and labour availability, is available publicly here.

Current Rest and WagesRest:

• By combining Duty and Rest Period Rules (DRPR), paid sick days, personal leave days, and existing rest and vacation provisions in their collective agreements, conductors and locomotive engineers currently work approximately 160 days a year.

Wages:

• In 2023, the average conductor earned approximately $121,000, not including pension and medical benefits.
• In 2023, the average locomotive engineer earned approximately $150,000, not including pension and medical benefits.

About EmbargoesRailroads issue embargoes when, in the judgement of the railroad, an actual or threatened physical or operational impairment, of a temporary nature, warrant restrictions against such movements. It is particularly critical in the event of labor disruption to prevent sensitive and dangerous goods to be stranded on the network. The embargoes are effective within 48 hours of being issued.

Any product coming to, leaving, or moving within Canada on rail will not be transported during a work stoppage. Only limited train movements within yards will be executed as there are not enough certified management train crews to ensure intercity train movements.

Should a settlement be reached, or arbitration be agreed to, CN will remove its embargoes and resume normal operations.

CN Forward-Looking Statements Certain statements by CN included in this news release constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and under Canadian securities laws. By their nature, forward-looking statements involve risks, uncertainties and assumptions. CN cautions that its assumptions may not materialize and that current economic conditions render such assumptions, although reasonable at the time they were made, subject to greater uncertainty. Forward-looking statements may be identified by the use of terminology such as “believes,” “expects,” “anticipates,” “assumes,” “outlook,” “plans,” “targets,” or other similar words. Forward-looking statements reflect information as of the date on which they are made. CN assumes no obligation to update or revise forward-looking statements to reflect future events, changes in circumstances, or changes in beliefs, unless required by applicable securities laws. In the event CN does update any forward-looking statement, no inference should be made that CN will make additional updates with respect to that statement, related matters, or any other forward-looking statement.

About CNCN powers the economy by safely transporting more than 300 million tons of natural resources, manufactured products, and finished goods throughout North America every year for its customers. With its nearly 20,000-mile rail network and related transportation services, CN connects Canada’s Eastern and Western coasts with the U.S. Midwest and the Gulf of Mexico, contributing to sustainable trade and the prosperity of the communities in which it operates since 1919.

Contacts:

Media	Investment Community
Jonathan Abecassis	Stacy Alderson
Director, Public Affairs and	Assistant Vice-President
Media Relations	Investor Relations
(438) 455-3692media@cn.ca	(514) 399-0052investor.relations@cn.ca