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CN Reaches New Tentative Collective Agreement with United Steelworkers

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CN (CNI) reaches tentative three-year collective agreement with United Steelworkers Local 2004, impacting 2,500 track and bridge employees.
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The tentative agreement between CN and the United Steelworkers (USW) Local 2004 is a significant development in labor relations, particularly for a company where track and bridge maintenance is critical to operations. Labor agreements are vital for ensuring uninterrupted services, which in turn, can affect a company's financial performance and stock valuation. A ratified agreement would mitigate the risk of strikes or work stoppages that can lead to operational delays, increased costs and revenue loss.

For investors, labor stability can be a positive signal, suggesting predictability in operations and potentially smoother revenue streams. Moreover, labor costs are a significant component of operating expenses for transportation companies. The details of the agreement, once ratified, will be crucial to understanding the financial implications, such as changes in wages or benefits that could affect the company's cost structure and profitability margins.

In the context of the transportation industry, particularly for rail companies like CN, the efficiency and reliability of track maintenance are directly connected to the company's ability to meet shipping demands. Any disruption in this area can have a ripple effect on supply chains, which may impact CN's reputation and its relationships with clients. Investors and analysts closely monitor such agreements as they can influence a company's competitive position.

Furthermore, the outcome of these negotiations can set precedents for other labor agreements within the sector, potentially affecting industry labor costs. It's also important to consider the timing of the agreement's ratification in relation to economic cycles, as labor demands and concessions can vary depending on the state of the economy.

From a financial perspective, the announcement of a tentative agreement without the disclosure of details limits the ability to fully assess its impact on CN's financials. However, investors can view the progress toward a ratified agreement as a step toward reducing uncertainty. The expiry of the previous agreement without a new one in place could have led to concerns about potential labor disputes.

Once the agreement is ratified and details are made public, it will be important to analyze the terms to forecast their impact on the company's labor costs and operating margins. This information can then be incorporated into financial models to adjust earnings projections and valuation metrics. The long-term financial health of CN will be influenced by how the agreement aligns with the company's strategic cost management and investment in infrastructure maintenance.

MONTREAL, March 01, 2024 (GLOBE NEWSWIRE) -- CN (TSX: CNR) (NYSE: CNI) announced today that a new tentative three-year collective agreement has been reached with the United Steelworkers (USW) Local 2004. USW represents approximately 2,500 track and bridge employees at CN, primarily responsible for track maintenance across Canada.

No details of the tentative agreement will be released publicly until the agreement is ratified. The current collective agreement expired on December 31st, 2023.

For more information on United Steelworkers, visit their website at www.usw.ca.  

About CN
CN is a world-class transportation leader and trade-enabler. Essential to the economy, to the customers, and to the communities it serves, CN safely transports more than 300 million tons of natural resources, manufactured products, and finished goods throughout North America every year. CN's network connects Canada’s Eastern and Western coasts with the U.S. South through an 18,800-mile rail network. CN and its affiliates have been contributing to community prosperity and sustainable trade since 1919. CN is committed to programs supporting social responsibility and environmental stewardship.

Contacts:

MediaInvestment Community
Jonathan AbecassisStacy Alderson
Director        Assistant Vice-President
Public Affairs and Media RelationsInvestor Relations
(438) 455-3692(514) 399-0052
media@cn.cainvestor.relations@cn.ca


FAQ

What is the significance of the tentative three-year collective agreement reached by CN (CNI) with United Steelworkers Local 2004?

The agreement impacts approximately 2,500 track and bridge employees at CN, primarily responsible for track maintenance across Canada.

When did the current collective agreement expire between CN (CNI) and United Steelworkers Local 2004?

The current collective agreement expired on December 31st, 2023.

Where can more information about United Steelworkers be found?

More information about United Steelworkers can be found on their website at www.usw.ca.

Canadian National Railway Company

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The Canadian National Railway Company is a Canadian Class I freight railway headquartered in Montreal, Quebec, which serves Canada and the Midwestern and Southern United States.