Trainmen on CN's former GTW territory renew hourly-rate labor contract

CHICAGO, Oct. 16, 2006 — CN announced today the renewal of an hourly-rate labor contract by approximately 300 members of the United Transportation Union (UTU) who work on the company's former Grand Trunk Western (GTW) territory.

Ratification of the five-year labor contract, retroactive to August 2005, marks the first renewal of an hourly-rate agreement on the GTW. The new contract, among other provisions, includes wage increases for UTU members.

In contrast with traditional mileage – and rule-based wage systems for train crews dating back to the steam locomotive era, GTW UTU members are paid hourly wages and enjoy job security in exchange for greater work rule flexibility for the company. Most of CN's train and engine employees in the United States are covered by hourly-rate labor agreements.

The GTW's main line between Chicago and Port Huron, Mich., is a key link in CN's rail corridor between the U.S. Midwest, Ontario, Quebec and the Maritime provinces.