CN receives arbitrator's decision setting terms, conditions of new three-year collective agreement between company, 3,000 conductors, trainpersons and yardpersons, says it will begin to implement terms of three-year pact immediately

Cindy Allen

MONTREAL , June 23, 2014 (press release) – Decision binding on company and union, achieving contractual certainty between the parties

CN (CNR.TO) (CNI) announced today that it has received -- and will begin to implement immediately -- Arbitrator Michel Picher's decision setting the terms and conditions of a new three-year collective agreement between CN and the Teamsters Canada Rail Conference - Conductors, Trainpersons and Yardpersons (TCRC-CTY). The arbitration ruling is binding on both parties and concludes the voluntary mediation/arbitration process that the company and union agreed to on March 22, 2014 .

The TCRC-CTY represents approximately 3,000 CN train conductors, trainpersons, yardpersons and traffic coordinators on CN's network in Canada .

Work rule changes are effective immediately. The decision provides for general wages increases as follows: three per cent retroactive to July 23, 2013 ; three per cent effective July 23, 2014 , and three per cent effective July 23, 2015 , which are in line with general wage and benefits provisions in recent settlements between CN and its other unions. Benefit improvements will take effect on July 1, 2014 .

Jim Vena, CN executive vice-president and chief operating officer, said: "CN is pleased that the arbitration process is finished and that the parties have contractual certainty -- this is good news for our customers and the Canadian economy.

"The award paves the way for the introduction of scheduling for conductors in Western Canada , an approach we believe will help to address manpower availability and promote greater work-life balance."

CN (CNR.TO) (CNI) is a true backbone of the economy, transporting approximately C$250 billion worth of goods annually for a wide range of business sectors, ranging from resource products to manufactured products to consumer goods, across a rail network spanning Canada and mid-America. CN - Canadian National Railway Company, along with its operating railway subsidiaries -- serves the cities and ports of Vancouver , Prince Rupert, B.C. , Montreal , Halifax , New Orleans , and Mobile, Ala. , and the metropolitan areas of Toronto , Edmonton , Winnipeg , Calgary , Chicago , Memphis , Detroit , Duluth, Minn. / Superior, Wis. , and Jackson, Miss. , with connections to all points in North America . For more information on CN, visit the company's website at www.cn.ca.

Forward-Looking Statements

Certain information included in this news release is "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and under Canadian securities laws. CN cautions that, by their nature, these forward-looking statements involve risks, uncertainties and assumptions. The Company cautions that its assumptions may not materialize and that current economic conditions render such assumptions, although reasonable at the time they were made, subject to greater uncertainty. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause the actual results or performance of the Company or the rail industry to be materially different from the outlook or any future results or performance implied by such statements.

Important risk factors that could affect the forward-looking statements include, but are not limited to, the effects of general economic and business conditions, industry competition, inflation, currency and interest rate fluctuations, changes in fuel prices, legislative and/or regulatory developments, compliance with environmental laws and regulations, actions by regulators, various events which could disrupt operations, including natural events such as severe weather, droughts, floods and earthquakes, labor negotiations and disruptions, environmental claims, uncertainties of investigations, proceedings or other types of claims and litigation, risks and liabilities arising from derailments, 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 "Management's Discussion and Analysis" in CN's annual and interim reports, Annual Information Form and Form 40-F filed with Canadian and U.S. securities regulators, available on CN's website, for a summary of major risks.

CN assumes no obligation to update or revise forward-looking statements to reflect future events, changes in circumstances, or changes in beliefs, unless required by applicable Canadian securities laws. In the event CN does update any forward-looking statement, no inference should be made that CN will make additional updates with respect to that statement, related matters, or any other forward-looking statement.

SOURCE CN

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