CN Reaches New Tentative Collective Agreement with IBEW
Rhea-AI Summary
CN (TSX: CNR) (NYSE: CNI) has announced reaching a new tentative four-year collective agreement with the International Brotherhood of Electric Workers (IBEW). The agreement covers approximately 750 Signals and Communication employees across Canada. The previous collective agreement expired on December 31, 2024. Details of the new agreement will remain confidential until ratification.
Positive
- Successful negotiation of a new four-year labor agreement, ensuring workforce stability
- Agreement reached without work disruption or operational impact
Negative
- None.
Insights
The new tentative agreement with IBEW marks a significant operational milestone for CN, particularly given the critical nature of Signals and Communications personnel in modern railway operations. These 750 specialized workers are responsible for maintaining the complex network of signals, switches and communication systems that ensure safe and efficient train movements across CN's extensive Canadian network.
The successful negotiation of a four-year agreement demonstrates CN's continued effectiveness in labor relations management, especially noteworthy in the current environment where several North American railroads have faced challenging labor negotiations. The swift conclusion of talks, just weeks after the previous contract's expiration, helps maintain operational continuity and prevents potential service disruptions that could impact CN's reliability metrics and customer relationships.
While financial terms remain undisclosed pending ratification, this agreement likely includes provisions addressing both wage adjustments and evolving technological requirements, as railway systems become increasingly digitized. The four-year duration provides CN with important medium-term cost visibility and operational stability, important for long-term planning and investment decisions.
This development positively reflects on CN's labor relations strategy and its ability to maintain constructive relationships with its workforce, a key differentiator in the highly competitive North American railway sector. The agreement's timing and duration should reassure investors about CN's operational stability and cost predictability through 2028.
MONTREAL, Jan. 28, 2025 (GLOBE NEWSWIRE) -- CN (TSX: CNR) (NYSE: CNI) announced today that a new tentative four-year collective agreement has been reached with International Brotherhood of Electric Workers (IBEW). The union represents approximately 750 Signals and Communication employees at CN across Canada.
No details of the tentative agreement will be released publicly until the agreement is ratified. The current collective agreement with IBEW expired on December 31, 2024.
About CN
CN 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 |
| Ashley Michnowski | Stacy Alderson |
| Senior Manager | Assistant Vice-President |
| Media Relations | Investor Relations |
| (438) 596-4329 | (514) 399-0052 |
| media@cn.ca | investor.relations@cn.ca |
FAQ
How many CN employees are covered by the new IBEW agreement in 2025?
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