April 10, 2007 23:54 ET

CN prepared for rotating labour action by conductors after UTU Canada members reject tentative settlement

MONTREAL, QUEBEC--(CCNMatthews - April 10, 2007) - CN said today management officers are ready to perform the work of striking United Transportation Union (UTU) employees in Canada who engage in rotating labour action against the company.

CN announced its contingency plan following UTU members' rejection of a tentative one-year settlement agreement with the company. The UTU leadership informed the company last week that it planned to launch renewed strike action against CN, including rotating strikes, if the membership failed to ratify the agreement.

UTU members in Canada have been on strike at CN since Feb. 10, 2007, but suspended strike action and returned to work during the ratification process for the tentative settlement, which was signed by the company and union on Feb. 24. The UTU represents 2,800 conductors and yard service employees at CN in Canada.

E. Hunter Harrison, president and chief executive officer, said: "CN is disappointed with the contract rejection announced today by the UTU. We believe the settlement was fair, equitable and consistent with collective agreements the company recently signed with another Canadian union.

"CN will work hard to maintain service for its customers during renewed labour disruption by the UTU. But our customers must appreciate the fact that CN service levels may be affected by the frequency, location and severity of the UTU's rotating work actions."

CN said the UTU has given the company verbal assurances that it will continue to protect commuter rail services in Toronto and Montreal during rotating labour action.

For more information about the UTU strike and CN negotiations, please visit

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 2006 Annual Consolidated Financial Statements and Notes thereto and Management's Discussion and Analysis (MD&A), for a summary of major risks.

CN - Canadian National Railway Company - spans Canada and mid-America, from the Atlantic and Pacific oceans to the Gulf of Mexico, serving the ports of Vancouver, Prince Rupert, B.C., Montreal, Halifax, New Orleans, and Mobile, Ala., and the key cities of Toronto, Buffalo, Chicago, Detroit, Duluth, Minn./Superior, Wis., Green Bay, Wis., Minneapolis/St. Paul, Memphis, St. Louis, and Jackson, Miss., with connections to all points in North America.

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