CPKC prepares to resume rail operations and awaits CIRB order

CALGARY, AB, 22 August 2024 /PRNewswire/ – Canadian Pacific Kansas City (TSX: CP) (NYSE: CP) (CPKC) today announced that it is preparing to resume rail operations in Canada following the announcement by the Canadian Minister of Labour that he would exercise his powers under Section 107 of the Canadian Labour Law to order the Canada Industrial Relations Board (CIRB) to initiate final, binding arbitration proceedings and to immediately resume railway operations.

CPKC will comply with the CIRB order once it has implemented the Minister’s directive. Our teams are already preparing for the safe and orderly resumption of our rail network. Further details on the timeline will be announced once we receive the CIRB order.

“The Canadian government has recognized the immense consequences of a rail shutdown for the Canadian economy, North American supply chains and all Canadians,” said Keith Creel, President and CEO of CPKC. “The government has taken action to Canadain the national interest. We regret that the government had to intervene because we fundamentally believe in and respect collective bargaining. However, given the risks for all parties involved, this situation required action.

“CPKC looks forward to welcoming all of our employees back to work to get our railway fully operational again and to serving our customers again and CanadaTrade and commerce throughout North America,” Creel added.

The Teamsters Canada Rail Conference (TCRC) – Train & Engine represents the approximately 3,200 locomotive drivers, train conductors and train and shunting workers of the CPKC and the TCRC – Rail Canadian Traffic Controllers represents about 80 rail traffic controllers, all in Canada.

Forward-looking information
This press release contains certain forward-looking information within the meaning of applicable securities laws in both the US And Canada. This press release contains forward-looking information relating to, among other things, collective bargaining between CPKC and its unions, possible work stoppages and CPKC’s business, operations and services. This forward-looking information also includes, among other things, statements regarding expectations, beliefs, plans, objectives, assumptions and statements regarding possible future events, conditions and results of operations or performance. Forward-looking information may include statements with words or headings such as “financial expectations,” “key assumptions,” “anticipate,” “believe,” “expect,” “plan,” “will,” “outlook,” “should” or similar words that suggest future results.

Undue reliance should not be placed on forward-looking statements as actual results may differ materially from those in the forward-looking statements. 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, without limitation, 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; availability and price of energy commodities; effects of competition and pricing pressures; industry capacity; changes in market demand; changes in commodity prices; uncertainty regarding the timing and quantity of commodities shipped through CPKC; inflation; changes in laws and regulations, including tariff regulation; changes in taxes and tax rates; possible increases in maintenance and operating costs; uncertainties relating to investigations, proceedings or other types of claims and litigation; labor disputes; risks and liabilities resulting from derailments; transportation of dangerous goods; timing of completion of capital and maintenance projects; currency and interest rate fluctuations; the impact of changes in market conditions and discount rates on the financial condition 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 government responses thereto and changes in technology. The foregoing list of factors is not exhaustive. These and other factors are detailed from time to time in reports that CPKC files with securities regulators. Canada And the United States. Reference is made to “Item 1A – Risk Factors” and “Item 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations – Forward-Looking Statements” 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 statements. Forward-looking statements are based on current expectations, estimates and forecasts, and it is possible that predictions, forecasts, projections and other forms of forward-looking statements made by CPKC will not be achieved. Except as required by law, CPKC undertakes no obligation to publicly update or otherwise revise any forward-looking statements, or the foregoing assumptions and risks affecting these forward-looking statements, whether as a result of new information, future events or otherwise.

About CPKC
With its global headquarters in Alberta, Canada., CanadaCPKC is the first and only single-track transnational railway connection Canada, the United States and Mexico, with unrivalled access to major ports of Vancouver To Atlantic Canada to the Gulf of Mexico to Lázaro Cárdenas, Mexico. With approximately 20,000 miles of track and 20,000 railroaders, CPKC offers its North American customers unparalleled rail service and network reach to major markets across the continent. CPKC grows with its customers, offering a range of freight transportation services, logistics solutions and supply chain expertise. Visit cpkcr.com to learn more about CPKC’s rail transportation advantages. CP-IR

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Source: CPKC