An anonymous director reports

CPKC AND TCRC LABOUR NEGOTIATIONS UPDATE

Canadian Pacific Kansas City Ltd. today filed a notice of dispute with the Federal Mediation and Conciliation Service requesting the appointment of a federal conciliation officer to assist CPKC and both the Teamsters Canada Rail Conference (TCRC) -- Train & Engine (T&E) division and the TCRC -- Rail Canada Traffic Controllers (RCTC) division in reaching negotiated collective agreements.

The TCRC -- T&E represents CPKC's roughly 3,200 locomotive engineers, conductors, and train and yard workers, and the TCRC-RCTC represents approximately 80 rail traffic controllers, all in Canada. This is a process available under the Canada Labour Code to help employers and unions achieve negotiated collective agreements.

Since September, 2023, CPKC has been negotiating in good faith with the TCRC -- T&E and TCRC -- RCTC. CPKC has offered both a fair and balanced agreement with wage and benefit increases and more schedule predictability and quality of life improvements for its T&E employees.

The latest collective bargaining negotiation session took place the week of Jan. 29, 2024. Both CPKC and union leadership remain far apart on the issues.

CPKC has an excellent record of successful collective bargaining with its unions. However, federal conciliation has been required in nine of the 10 collective bargaining rounds of negotiations between the TCRC -- T&E and CPKC since 1993.

CPKC is and will remain focused on, and committed to, arriving at a negotiated outcome that is in the best interests of its employees and their families, its customers, its shareholders, and the overall Canadian economy. Everyone benefits when the railway can continue providing essential rail service, delivering goods across Canada and supporting the import and export of goods internationally.

While the two TCRC collective agreements expired on Dec. 31, 2023, they remain in effect under Canadian labour law until the parties reach new agreements.

About Canadian Pacific Kansas City Ltd.

With its global headquarters in Calgary, Alta., Canada, CP Kansas is the first and only single-line transnational railway linking Canada, the United States and Mexico, with unrivalled access to major ports from Vancouver to Atlantic Canada to the Gulf of Mexico to Lazaro Cardenas, Mexico. Stretching approximately 20,000 route miles and employing 20,000 railroaders, CPKC provides North American customers unparalleled rail service and network reach to key markets across the continent. CP Kansas is growing with its customers, offering a suite of freight transportation services, logistics solutions and supply chain expertise.