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CPKC disappointed by TCRC';s decision to dispute Minister's direction to resume railway operations

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Canadian Pacific Kansas City (CPKC) expressed disappointment over the Teamsters Canada Rail Conference's (TCRC) decision to challenge the Canadian Minister of Labour's direction to resume railway operations. Following the Minister's order under section 107 of the Canada Labour Code, the Canada Industrial Relations Board (CIRB) held an urgent conference with CPKC. However, the TCRC refused to discuss service resumption and instead indicated their intention to challenge the constitutionality of the Minister's direction and the CIRB's discretion.

A follow-up conference is scheduled for 10:00 a.m. ET on Friday, Aug. 23, to hear further submissions. CPKC remains ready to resume service once ordered by the CIRB but is concerned about the delay's impact on serving the Canadian economy.

Canadian Pacific Kansas City (CPKC) ha espresso delusione per la decisione della Teamsters Canada Rail Conference (TCRC) di contestare l'ordinanza del Ministro del Lavoro canadese di riprendere le operazioni ferroviarie. Dopo l'ordine del Ministro ai sensi della sezione 107 del Codice canadese del lavoro, il Canada Industrial Relations Board (CIRB) ha tenuto una conferenza urgente con CPKC. Tuttavia, la TCRC ha rifiutato di discutere la ripresa del servizio e ha invece manifestato l'intenzione di contestare la costituzionalità dell'ordinanza del Ministro e il potere discrezionale del CIRB.

Una conferenza di follow-up è programmata per le 10:00 a.m. ET di venerdì 23 agosto, per ascoltare ulteriori presentazioni. CPKC è pronta a riprendere il servizio non appena ordinato dal CIRB, ma è preoccupata per l'impatto del ritardo sul servizio all'economia canadese.

Canadian Pacific Kansas City (CPKC) expresó su decepción por la decisión de la Teamsters Canada Rail Conference (TCRC) de impugnar la dirección del Ministro de Trabajo de Canadá para reanudar las operaciones ferroviarias. Tras la orden del Ministro bajo la sección 107 del Código del Trabajo de Canadá, la Junta Canadiense de Relaciones Laborales (CIRB) celebró una conferencia urgente con CPKC. Sin embargo, la TCRC se negó a discutir la reanudación del servicio y señaló su intención de desafiar la constitucionalidad de la dirección del Ministro y la discreción del CIRB.

Una conferencia de seguimiento está programada para las 10:00 a.m. ET del viernes 23 de agosto, para escuchar más presentaciones. CPKC se mantiene lista para reanudar el servicio una vez que lo ordene el CIRB, pero está preocupada por el impacto del retraso en el servicio a la economía canadiense.

캐나다 태평양 캔자스 시티(CPKC)는 캐나다 노동부 장관의 철도 운영 재개 지침에 도전하기로 한 팀스터스 캐나다 철도 협의회(TCRC)의 결정에 실망을 표명했습니다. 캐나다 노동법 제107조에 따른 장관의 명령 이후, 캐나다 산업 관계 위원회(CIRB)는 CPKC와 긴급 회의를 개최했습니다. 그러나 TCRC는 서비스 재개에 대한 논의를 거부하고 장관의 지침 및 CIRB의 재량의 헌법 적합성을 도전할 의도를 나타냈습니다.

후속 회의는 8월 23일 금요일 오전 10시에 예정되어 있으며, 추가 제출 사항을 청취할 예정입니다. CPKC는 CIRB가 명령하는 즉시 서비스를 재개할 준비가 되어 있지만, 지연이 캐나다 경제에 미치는 영향에 대해 우려하고 있습니다.

Canadian Pacific Kansas City (CPKC) a exprimé sa déception concernant la décision de la Teamsters Canada Rail Conference (TCRC) de contester l'instruction du ministre canadien du Travail de reprendre les opérations ferroviaires. Suite à l'ordre du ministre en vertu de l'article 107 du Code canadien du travail, la Commission canadienne des relations industrielles (CIRB) a tenu une conférence urgente avec CPKC. Cependant, la TCRC a refusé de discuter de la reprise du service et a plutôt indiqué son intention de contester la constitutionnalité de l'instruction du ministre et de la discrétion de la CIRB.

Une conférence de suivi est prévue pour le vendredi 23 août à 10h00 ET afin d'entendre d'autres soumissions. CPKC est prête à reprendre le service dès que cela sera ordonné par la CIRB, mais elle s'inquiète de l'impact du retard sur le service à l'économie canadienne.

Canadian Pacific Kansas City (CPKC) äußerte seine Enttäuschung über die Entscheidung der Teamsters Canada Rail Conference (TCRC), die Anweisung des kanadischen Arbeitsministers zur Wiederaufnahme des Bahnbetriebs anzufechten. Nach der Anordnung des Ministers gemäß Abschnitt 107 des kanadischen Arbeitsgesetzes hielt das Canada Industrial Relations Board (CIRB) ein dringendes Gespräch mit CPKC ab. Die TCRC weigerte sich jedoch, die Wiederaufnahme des Dienstes zu besprechen, und erklärte stattdessen ihre Absicht, die Verfassungsmäßigkeit der Anweisung des Ministers und die Ermessensprüfung durch das CIRB anzufechten.

Eine Nachbesprechung ist für Freitag, den 23. August, um 10:00 Uhr ET geplant, um weitere Vorträge zu hören. CPKC ist bereit, den Dienst wieder aufzunehmen, sobald das CIRB es anordnet, sorgt sich jedoch über die Auswirkungen der Verzögerung auf die kanadische Wirtschaft.

Positive
  • CPKC is prepared to resume railway operations immediately upon CIRB order
Negative
  • TCRC's challenge to the Minister's direction delays resumption of railway operations
  • Delay in service resumption will affect CPKC's ability to serve the Canadian economy
  • Uncertainty regarding the timeline for resolving the dispute and resuming operations

Insights

The TCRC's decision to challenge the Minister's direction marks a significant escalation in the labor dispute with CPKC. This move could prolong the service disruption, potentially impacting CPKC's financial performance and revenue in the short term. The delay in resuming operations may lead to customer dissatisfaction and possible loss of business to competitors. From a legal standpoint, the union's challenge to the constitutionality of the Minister's direction adds a complex layer to the dispute, potentially setting a precedent for future labor conflicts in the railway sector. Investors should monitor this situation closely, as prolonged disruption could affect CPKC's market position and shareholder value.

This labor dispute highlights the vulnerability of Canada's supply chain to railway disruptions. CPKC's inability to resume operations immediately could have ripple effects across various industries dependent on rail transport, including agriculture, energy and manufacturing. The delay may lead to increased shipping costs and logistical challenges for businesses, potentially impacting GDP growth. For CPKC, this situation could result in lost market share to trucking companies or other railways if customers seek alternative transportation methods. Long-term, this dispute may prompt discussions about automation and reducing labor dependencies in the railway sector, which could significantly impact CPKC's future operations and capital expenditure plans.

CALGARY, AB, Aug. 22, 2024 /PRNewswire/ - Canadian Pacific Kansas City (TSX: CP) (NYSE: CP) (CPKC) said, following the direction issued by the Canadian Minister of Labour pursuant to section 107 of the Canada Labour Code, the Canada Industrial Relations Board (CIRB) convened an urgent case management conference with CPKC at 9:00 p.m. ET tonight. CPKC was prepared to fully address the resumption of service given its obvious priority.

Unfortunately, the Teamsters Canada Rail Conference (TCRC) representing the Train and Engine division and Rail Canada Traffic Controller division refused to discuss any resumption of service, and instead indicated that they wish to make submissions to challenge the constitutionality of the Minister's direction, as well as the CIRB's discretion to proceed with any order. Another case management conference is now scheduled for 10:00 a.m. ET, tomorrow, Friday, Aug. 23 to further hear submissions by the parties.

While the Minister directed that the CIRB proceed expeditiously, any decision by the CIRB on the resumption of service will be delayed. CPKC remains prepared to resume service as soon as it is ordered to do so by the CIRB.

CPKC is disappointed by this delay, which will affect our ability to resume serving the Canadian economy. 

Forward looking information

This news release contains certain forward-looking information within the meaning of applicable securities laws in both the U.S. and Canada. This news release contains forward-looking information relating, but not limited to, collective bargaining between CPKC and its labour unions, potential work stoppage and CPKC's business, operations and service. This forward-looking information also includes, but is not limited to, statements concerning expectations, beliefs, plans, goals, objectives, assumptions and statements about possible future events, conditions, and results of operations or performance.  Forward-looking information may contain statements with words or headings such as "financial expectations", "key assumptions", "anticipate", "believe", "expect", "plan", "will", "outlook", "should" or similar words suggesting future outcomes.   

Undue reliance should not be placed on forward-looking information as actual results may differ materially from the forward-looking information. Forward-looking information is not a guarantee of future performance. By its nature, CPKC's forward-looking information involves numerous assumptions, inherent risks and uncertainties that could cause actual results to differ materially from the forward-looking information, including but not limited to the following factors: changes in business strategies; general North American and global economic, credit and business conditions; risks in agricultural production such as weather conditions and insect populations; the availability and price of energy commodities; the effects of competition and pricing pressures; industry capacity; shifts in market demand; changes in commodity prices; uncertainty surrounding timing and volumes of commodities being shipped via CPKC; inflation; changes in laws and regulations, including regulation of rates; changes in taxes and tax rates; potential increases in maintenance and operating costs; uncertainties of investigations, proceedings or other types of claims and litigation; labour disputes; risks and liabilities arising from derailments; transportation of dangerous goods; timing of completion of capital and maintenance projects; currency and interest rate fluctuations; effects of changes in market conditions and discount rates on the financial position of pension plans and investments; and various events that could disrupt operations, including severe weather, droughts, floods, avalanches and earthquakes as well as security threats and governmental response to them, and technological changes. The foregoing list of factors is not exhaustive.  These and other factors are detailed from time to time in reports filed by CPKC with securities regulators in Canada and the United States. Reference should be made to "Item 1A - Risk Factors" and "Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations - Forward-Looking Information" in CPKC's annual and interim reports on Form 10-K and 10-Q. Readers are cautioned not to place undue reliance on forward-looking information. Forward looking information is based on current expectations, estimates and projections and it is possible that predictions, forecasts, projections, and other forms of forward-looking information will not be achieved by CPKC. Except as required by law, CPKC undertakes no obligation to update publicly or otherwise revise any forward-looking information, or the foregoing assumptions and risks affecting such forward-looking information, whether as a result of new information, future events or otherwise.

About CPKC

With its global headquarters in Calgary, Alta., Canada, CPKC is the first and only single-line transnational railway linking Canada, the United States and México, with unrivaled access to major ports from Vancouver to Atlantic Canada to the Gulf of México to Lázaro Cárdenas, México. Stretching approximately 20,000 route miles and employing 20,000 railroaders, CPKC provides North American customers unparalleled rail service and network reach to key markets across the continent. CPKC is growing with its customers, offering a suite of freight transportation services, logistics solutions and supply chain expertise. Visit cpkcr.com to learn more about the rail advantages of CPKC. CP-IR

 

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SOURCE CPKC

FAQ

What is the current status of CPKC's railway operations in Canada?

CPKC's railway operations are currently suspended due to a labor dispute with the Teamsters Canada Rail Conference (TCRC). The company is awaiting a decision from the Canada Industrial Relations Board (CIRB) to resume service.

Why is CPKC (CP) unable to resume railway operations immediately?

CPKC cannot resume operations immediately because the TCRC is challenging the constitutionality of the Minister of Labour's direction to resume service and the CIRB's discretion to proceed with any order.

When is the next case management conference scheduled for CPKC (CP) and TCRC?

The next case management conference is scheduled for 10:00 a.m. ET on Friday, August 23, 2024, to hear further submissions from both parties.

How is the delay in resuming operations affecting CPKC (CP)?

The delay is affecting CPKC's ability to serve the Canadian economy, potentially impacting the company's operations and financial performance.

Canadian Pacific Kansas City Limited

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