CN: CN says UTU demands out of line with private sector wage settlements
CN says UTU demands out of line with private sector wage settlements
MONTREAL, QUEBEC — (MARKET WIRE) — February 11, 2007 — CN said today the United Transportation Union (UTU) demanded excessive wage
increases during negotiations that broke off Feb. 9, 2007.
The UTU, which represents 2,800 conductors and yard-service employees at CN in Canada, launched its strike against the company at 0001 hours Feb. 10.
The UTU final offer on wages - three years at 4.5 per cent, 4.5 per cent and 4 per cent - was 40 per cent higher than the increases CN negotiated in recent collective agreements for a comparable three-year period.
The UTU’s final offer on lump sum bonus payments - C$1,000 per year over the three-year period - was three times greater than the other recent agreements.
The average 2006 annual wage increase in major collective agreement settlements in the private sector in Canada was 2.1 per cent. The transportation industry average wage increase was also 2.1 per cent.
In 2006 average annual UTU employee earnings were C$75,000, with 25 per cent of the UTU membership in Canada making more than C$90,000 annually.
E. Hunter Harrison, president and chief executive officer of CN, said: “We are prepared to negotiate a fair and equitable settlement with the UTU in the same way we’ve done with our other unions. But such a settlement must be economically sustainable and maintain the company’s competitiveness in the transportation marketplace.”
CN continues to offer freight service across its network in Canada with management personnel filling striking workers’ jobs. CN’s network is operating smoothly.
CN’s other unionized employees remain on the job in Canada and the United States.
CN and the UTU are maintaining normal commuter rail operations on CN lines in Toronto and Montreal.
Excluded from strike action are UTU members employed on CN’s Northern Quebec Internal Short Line, Algoma Central Railway in northern Ontario, and Mackenzie Northern Railway in northern Alberta.
This news release contains forward-looking statements. CN cautions that, by their nature, forward-looking statements involve risk and uncertainties, and that its results could differ materially from those expressed or implied in such statements. Important factors that could cause such differences include, but are not limited to, industry competition, legislative and/or regulatory developments, compliance with environmental laws and regulations, various events which could disrupt operations, including natural events such as severe weather, droughts, floods and earthquakes, the effects of adverse general economic and business conditions, inflation, currency fluctuations, changes in fuel prices, labour disruptions, environmental claims, investigations or proceedings, other types of claims and litigation, and other risks detailed from time to time in reports filed by CN with securities regulators in Canada and the United States. Reference should be made to CN’s most recent Form 40-F filed with the United States Securities and Exchange Commission, its Annual Information Form filed with the Canadian securities regulators, its 2005 Annual Consolidated Financial Statements and Notes thereto and Management’s Discussion and Analysis (MD&A), as well as its 2006 quarterly consolidated financial statements and MD&A, for a summary of major risks.
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