Canadian Pacific (TSX:CP)(NYSE:CP) today announced it has
received 72-hour strike notice from the Teamsters Canada
Rail Conference (TCRC), which represents 4,800 engineers,
conductors and rail traffic controllers in Canada.
While the parties continue to meet with the assistance of
the Federal mediator and conciliator service, the 72-hour
notice issued by the union means a work stoppage can occur
as early as 0001 on May 23, 2012.
In the event there is a work stoppage, CP will proceed with
a safe and structured shut down of its train operations in
Canada.
"CP believes the offer it has presented the union is fair
and reasonable. We are willing to enter into binding
arbitration or negotiation period extensions should an
agreement not be reached at this stage," said Executive
Vice President and Chief Operations Officer Mike Franczak.
"This would ensure the continued operations of freight and
commuter trains on CP's Canadian Network for the benefit of
our customers, communities we serve and the economy at
large. Any extension to the bargaining process requires
consent of the union or action of the federal government."
CP, which contributed approximately $1.9 billion of
solvency deficit contributions to its pension plan over the
past three years, requires changes to legacy pension and
post-retirement benefits to make them industry-comparable.
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 exceeds
what this union has already agreed to for the majority of
its members at another major Canadian railway.
"The offer on pension aligns with the industry and allows
the railway to remain competitive as we invest in strategic
infrastructure upgrades along our network," said Franczak.
Note on forward-looking information
This news release contains certain forward-looking
statements relating but not limited to our operations,
proposed investments, anticipated financial performance and
business prospects. Undue reliance should not be placed on
forward-looking information as actual results may differ
materially.
By its nature, CP's forward-looking information
involves numerous assumptions, inherent risks and
uncertainties. Forward-looking statements are not
guarantees of future performance. Factors that could affect
forward-looking information include, but are not limited
to: changes in business strategies; general North American
and global economic, credit and business conditions;
inflation; currency and interest rate fluctuations; the
availability and price of energy commodities; the effects
of competition and pricing pressures; industry capacity;
shifts in market demand; changes in laws and regulations,
including regulation of rates; changes in taxes and tax
rates; actions by regulators; potential increases in
maintenance and operating costs; uncertainties of
litigation; risks and liabilities arising from derailments;
timing of completion of capital and maintenance projects;
currency and interest rate fluctuations; technological
changes; and various events that could disrupt operations,
including severe weather conditions, flooding, earthquakes,
labour disputes, risks and liabilities arising from
derailments as well as security threats and governmental
response to them. Other risks are detailed from time to
time in reports filed by CP with securities regulators in
Canada and the United States. Reference should be made to
"Management's Discussion and Analysis" in
CP's annual and interim reports, Annual Information
Form and Form 40-F for a summary of major risks.
Except as required by law, CP undertakes no obligation to
update publicly or otherwise revise any forward-looking
information, whether as a result of new information, future
events or otherwise.
About Canadian Pacific
Canadian Pacific (TSX:CP)(NYSE:CP) operates a North
American transcontinental railway providing freight
transportation services, logistics solutions and supply
chain expertise. Incorporating best-in-class technology and
environmental practices, CP is re-defining itself as a
modern 21st century transportation company built on safety,
service reliability and operational efficiency. Visit
cpr.ca and see how Canadian Pacific is Driving the Digital
Railway.
Contacts:
Media
Ed Greenberg
Tel:612-849-4717
24/7 Media Pager: 855-242-3674
Ed_greenberg@cpr.ca
Investment Community
Janet Weiss
Tel: 403-319-3591
investor@cpr.ca
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