CN’s improved offer to the TCRC

April 12, 2024  — As part of the bargaining process facilitated by federal conciliators, CN and the TCRC union met April 10-12, 2024. During this meeting, CN proposed an improved offer to the union with important upgrades, focusing on:

• Better wages – The proposed hourly rates have been increased by $5/hour.
• Job security – Employees hired before the ratification of an agreement will be guaranteed employment, with no risk of a lay-off.
• Guaranteed earnings – No employee will lose money with this proposal. Employees who currently earn above the proposed hourly agreement will have their salaries protected.

TCRC-represented employees received this letter  with the below summary of the improved offer. Full details of the offer can be found here .

We value our relationship with unions representing CN employees and will continue to negotiate in good faith with the TCRC union leaders as it remains our goal to work towards a deal that is good for our employees, customers, and the economy. Our discussions with the TCRC have been and will remain focused on improving employee work-life balance and work safety while also increasing predictability and flexibility in schedules, giving employees more time with guaranteed consecutive days off, and equitable compensation.

Summary of CN’s improved offer to the TCRC on April 11, 2024:

• Consistent schedules with guaranteed consecutive days off:
  Employees will know, in advance, the days they are at work and the days they are off – giving them more flexibility and work-life balance.
  Further, they cannot be called to work during the scheduled days off at their home terminal.
  Examples of schedules:
     o 5 days a week at 8 hours a day – 2 consecutive days off with no calls for duty
     o 4 days a week at 10 hours per day – 3 consecutive days off with no calls for duty
     o 6 days a week at 8 hours a day - 3 consecutive days off with no calls for duty
• Wages:
  Retroactive to January 1, 2024, all employees will receive a wage increase of 3% on their current applicable rate of pay (including trainee rates of pay).
  Effective January 1, 2025, mileage-based employees will move to an hourly rate of pay. The rates will be the following:
     o Assistant Conductor/Yard Helper - $60.00/hr
     o Conductor - $65.00/hr
     o Locomotive Engineer - $75.00/hr
     o Trainee - $31.00/hr
     o Traffic Coordinators will receive a 2.5% increase on their rate of pay
  
  No employee will lose money with this proposal. Employees who currently earn above the proposed hourly agreement will have their salaries protected.
  (The chart below gives an estimation of total earnings under the hourly rate model)
  Effective January 1, 2026, a wage increase of 2% will apply to the rates of pay for all employees designated above.
  Effective January 1, 2027, a wage increase of 2% will apply to the rates of pay for all employees designated above.

Minimum guarantee = 40 hours x 52 weeks x hourly rate (This figure includes payments for hours worked on statutory holidays at straight time, extra payment for premium rate is not estimated)
Statutory holiday payments = 8 hours x 11 days x hourly rate (This figure does not estimate payments for hours worked on statutory holidays)
Overtime = Minimum guaranteed earnings x 10% estimation of overtime (equates to 4 hours of overtime per week). This figure will vary dependent on the overtime an employee elects to work.
Heldaway = 2023 average heldaway payments under current agreement were used as estimation. Actual heldaway above the minimum guarantee will vary dependent on the time an employee actually spends held away from home.

• Further wage premiums:
  Training Allowance
  CN is proposing an allowance for any employee working with a trainee of $7 per hour.
  
  Meal Allowance (applicable to all employees)
  CN is prepared to provide the following improvements to meal allowances:
     o Increase to $35.00 per day where accommodations with cooking facilities are provided.
     o Increase to $55.00 where accommodations without cooking facilities are provided.
     o Increase to $90.00 for the all-inclusive allowance.
  Shift differential premiums will be unchanged from what is currently existing in the Collective Agreements.
• Guaranteed 40 hours of work per week:
  All employees, including those on the spareboard, will have a paid guarantee minimum of 40 hours of work per week.
• Overtime paid at time and a half:
  When an employee works beyond their scheduled hours, they will earn overtime paid at time and a half.
• Work-life balance:
     o Reset breaks will now be scheduled and employees will know in advance, allowing for more predictability.
     o Maximum hours of work will comply with those set out in the Duty and Rest Period Rules.
     o Employees will continue to self-assess their fitness for duty before going to work using the KSS Scale.
     o Heldaway on single subdivision will commence after the 11th hour at the regular hourly rate. Starting at the 14th hour, the 1.5X overtime rate will apply.   Heldaway threshold will be limited to 16 hours.
     o Heldaway on extended run and branch lines will commence after the 12th hour at the regular hourly rate. Starting at the 15th hour, the 1.5X overtime rate will apply.  Heldaway threshold will be limited to 18 hours.
     o Elimination of round-trips at the away from home terminal (no double pillow).
     o Elimination of employees being put to bed online (except in emergency situations) .
• Vacation:
  CN is proposing to improve the vacation leave entitlement effective for the next calendar selection in 2025 to the following:
     o 0 to 4.99 years of service: 3 weeks
     o 5 to 9.99 years of service: 4 weeks
     o 10 to 28.99 years of service: 5 weeks 
     o 29+ years of service: 6 weeks
• Job security:
  The Company understands that employees may be concerned with layoffs as result of CN’s new scheduling and hours of work proposal. As a result, CN is prepared that, on a one-time only basis, to provide job security (protection against layoffs) for all employees with a hire date on or before the date of ratification of a potential deal. Nothing in this proposal has the effect of limiting CN’s ability to terminate an employee for cause.
• Mobile Workforce:
  To adapt to the changing volumes across our network, whether on a calendar or terminal-to-terminal basis, which leave CN with inadequate staffing levels and employees and customers with unpredictability, CN is proposing a new classification of employees, which shall be bid and awarded on a seniority basis.
  These employees shall move around the network to cover work, on an as needed basis.