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TCRC collective bargaining information

TCRC collective bargaining information

Status of negotiations:
On March 22, CP announced that it has reached agreement with the Teamsters Canada Rail Conference (TCRC) – Train and Engine Negotiating Committee to enter into binding arbitration. 

CP wishes to thank the Canadian Federal Conciliation and Mediation Services for its critical work during this negotiation.  

This agreement will allow for CP’s 3,000 locomotive engineers, conductors, train and yard workers in Canada to return to work at noon local time on March 22, 2022. CP will work diligently with customers to safely restore normal service to our network as quickly as possible.

Facts and background

Canadian Pacific (CP) has an excellent track record of successful collective bargaining with our unions. Since September, CP has been negotiating in good faith with the Teamsters Canada Rail Conference (TCRC), the union that represents approximately 3,000 of our locomotive conductors and engineers in Canada. Unfortunately, the TCRC leadership has a familiar pattern when it comes to negotiating collective agreements: federal conciliation has been required in eight of the nine collective bargaining rounds of negotiations between the TCRC and CP - despite CP's efforts - since 1993. In each case, the TCRC has counted on the federal government to step in and resolve matters for them. 

Now, once again, CP is focused on arriving at a negotiated outcome that is in the best interests of our employees and their families, our customers, our shareholders and the overall Canadian economy. The TCRC leadership, however, appears poised to force a shutdown of the essential rail supply chain, jeopardizing Canada's national economy, by making unreasonable demands. As a result, a work stoppage at CP could occur in March.

A work stoppage of any duration at CP will impact virtually all commodities within the Canadian supply chain, thereby crippling the performance of Canada's trade-dependent economy. The consequences of a work stoppage will be felt long after workers return to work and service resumes. This is an issue of doing what is best for Canada's economy. 

The timing could not be worse.


 

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 Zone Configuration ‭[3]‬

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PENSION KEY FACTS

  • CP has one of the top oldest and largest pension plans in Canada. We are proud to have a fully funded plan that continues to offer lifetime retirement benefits. 
  • CP, CN and VIA Rail all have pension caps in place. While no two pension plans are exactly alike, CP pensions are equal to or more generous than pensions for similar roles at other Canadian railways; up to 28% higher in many cases. TCRC members can retire with a lifetime pension that increases after retirement to reduce the impact of inflation. This is in addition to Canada Pension Plan and Old Age Security benefits.  
  • Less than 10% of private sector employees in Canada enjoy the financial security of a Defined Benefit (DB) pension plan. While DB pension plans are considered the “gold standard” for employees, these plans are disappearing in the private sector due to rising costs in the face of low interest rates, volatile financial markets and longer life expectancy.
  • Since 2009, CP has contributed $2.5 billion to the pension plan. These contributions – hundreds of millions of dollars more than required by law – were to strengthen the plan and not made as advanced funding for changes benefiting a select group of participants. 
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 Zone Configuration ‭[2]‬

  • Since 2007, the TCRC members have enjoyed a wage increase of 43 percent, which exceeds the compounded inflation rate by nearly 20 percent.*
  • Average CP TCRC locomotive engineer earnings in 2021: $135,442
    Top CP TCRC locomotive engineer earnings in 2021: $209,773
  • Average CP TCRC conductor, trainperson or yardperson earnings in 2021: $107,872
    Top CP TCRC conductor, trainperson or yardperson earnings in 2021: $182,888
  • Canadian average earnings in 2021: $65,138
    * Statistics Canada. Table 18-10-0005-01 Consumer Price Index, annual average, not seasonally adjusted, available online at https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1810000501 
 

 Zone Configuration ‭[1]‬

  • “Canada’s rail network has been a key driver of the growth of the country’s major industries and the success of others along the supply chain. Railways are crucial for exporting Canadian goods. An estimated $91.3 billion—or 15.4 percent—of international exports were shipped by rail in 2019.”*
  • A work stoppage would create a freight capacity crisis that will have a profound impact on rail shippers throughout the broader Canadian economy. 
  • The capacity loss from a work stoppage will be lost forever.

    *
    The 2020 Conference Board of Canada report, Moving People, Products, and the Economy: The Economic Footprint of Canada’s Rail Industry