To all managers in Canada/À tous les membres du personnel cadre au
Canada
==================================================
=============================
A MESSAGE FROM E. HUNTER HARRISON
_________________________________
As we approach the end of the year, we are working towards the
conclusion of our round of bargaining in Canada. We came through a
difficult period during the CAW strike, and we proved we work through
tough times together. From this experience I know everyone recognizes
that a labour disruption doesn't just hurt our customers and company;
it hurts all of us at CN.
I am frustrated like many of you are because, after a year of
bargaining, we still have not concluded agreements with the UTU, TCRC,
BMWE and IBEW.
Employees governed by these agreements should understand that we are
not seeking concessions during this round of bargaining. In fact, our
agenda focuses on basic status quo agreements that include more than
fair wage and benefit increases over a three-year period. I am sure
you remember that the CAW, the CNRPA, and RCTC all have signed and
ratified three year deals that provide 3% wage increases, enhanced
fringe benefit improvements and $1000 lump sum payments in lieu of
incentive plan payments. We are not asking any of our employees to
accept less than the value of these settlements.
In fact, let me give you an example. Last week, we presented an offer
to the UTU bargaining committee that went beyond our basic status quo
proposal. This committee informed us that our employees are concerned
about quality of life issues (scheduling and time off). We responded
by telling this group we were willing to address these concerns by:
1) Implementing scheduling on a regional or local basis and assigned
days off for all classes of service. With the implementation of
scheduling/assigned days off we are seeking the removal of mileage
caps since they would now be redundant with the introduction of
scheduling/assigned days off. (We would like to expand the 746 system
to Eastern Canada, as well.)
2) Settling furlough boards with guaranteed spare boards that provide
both protections to ALL CURRENT employees and assigned day(s) off to
all. Additionally, we are willing to offer a certain number of lump
sum severances up to $100,000 (as well as relocation allowances).
Under this new arrangement, employees will know when they are going to
work, and when their days off will be. In exchange, we are asking for
more flexibility in managing our manpower needs. An example would be:
a road employee shows for work at 8:00, but the train has not arrived
at the terminal or is not ready to depart. We would like to be able to
utilize that employee in road or yard service until the train ordered
for is ready to depart.
The UTU Bargaining Committee rejected our proposals and showed no
willingness to make any serious compromises on their original
inflationary demands after six months of negotiating.
We have a great deal of respect for our union leadership, and we are
not being critical of their efforts, although we are concerned that
there may be a misunderstanding of the Company's bargaining agenda.
Accordingly, if your employees ask you about the status of bargaining,
explain the facts to them. I caution you: we must not negotiate with
our employees directly. However, as managers, we have a responsibility
to understand employees' needs as well as the union does.
E. Hunter Harrison
President and CEO
09/27/2004
Canada
==================================================
=============================
A MESSAGE FROM E. HUNTER HARRISON
_________________________________
As we approach the end of the year, we are working towards the
conclusion of our round of bargaining in Canada. We came through a
difficult period during the CAW strike, and we proved we work through
tough times together. From this experience I know everyone recognizes
that a labour disruption doesn't just hurt our customers and company;
it hurts all of us at CN.
I am frustrated like many of you are because, after a year of
bargaining, we still have not concluded agreements with the UTU, TCRC,
BMWE and IBEW.
Employees governed by these agreements should understand that we are
not seeking concessions during this round of bargaining. In fact, our
agenda focuses on basic status quo agreements that include more than
fair wage and benefit increases over a three-year period. I am sure
you remember that the CAW, the CNRPA, and RCTC all have signed and
ratified three year deals that provide 3% wage increases, enhanced
fringe benefit improvements and $1000 lump sum payments in lieu of
incentive plan payments. We are not asking any of our employees to
accept less than the value of these settlements.
In fact, let me give you an example. Last week, we presented an offer
to the UTU bargaining committee that went beyond our basic status quo
proposal. This committee informed us that our employees are concerned
about quality of life issues (scheduling and time off). We responded
by telling this group we were willing to address these concerns by:
1) Implementing scheduling on a regional or local basis and assigned
days off for all classes of service. With the implementation of
scheduling/assigned days off we are seeking the removal of mileage
caps since they would now be redundant with the introduction of
scheduling/assigned days off. (We would like to expand the 746 system
to Eastern Canada, as well.)
2) Settling furlough boards with guaranteed spare boards that provide
both protections to ALL CURRENT employees and assigned day(s) off to
all. Additionally, we are willing to offer a certain number of lump
sum severances up to $100,000 (as well as relocation allowances).
Under this new arrangement, employees will know when they are going to
work, and when their days off will be. In exchange, we are asking for
more flexibility in managing our manpower needs. An example would be:
a road employee shows for work at 8:00, but the train has not arrived
at the terminal or is not ready to depart. We would like to be able to
utilize that employee in road or yard service until the train ordered
for is ready to depart.
The UTU Bargaining Committee rejected our proposals and showed no
willingness to make any serious compromises on their original
inflationary demands after six months of negotiating.
We have a great deal of respect for our union leadership, and we are
not being critical of their efforts, although we are concerned that
there may be a misunderstanding of the Company's bargaining agenda.
Accordingly, if your employees ask you about the status of bargaining,
explain the facts to them. I caution you: we must not negotiate with
our employees directly. However, as managers, we have a responsibility
to understand employees' needs as well as the union does.
E. Hunter Harrison
President and CEO
09/27/2004
