CN and Kansas City Southern (“KCS”) today announced that the International Brotherhood of Boilermakers (“IBB”) filed a letter of support for CN’s and KCS’ proposed voting trust with the Surface Transportation Board (“STB”). This letter from IBB, one of the oldest unions in the United States representing more than 50,000 skilled craftsmen and craftswomen and industrial workers throughout the United States and Canada, underscores the significant benefits for organized labor from a CN-KCS combination.
The IBB has a direct interest in the proposed pro-competitive CN-KCS combination. As a larger, continental enterprise with complementary routes and an enhanced platform for revenue growth, capital investment and job creation, the combined company would be well-positioned to create new growth opportunities for customers, labor partners, employees and other stakeholders. CN is committed to working with KCS’ management team to create new jobs up and down the line.
The plain vanilla voting trust, which is identical to the CP trust approved for use by the STB, is an integral component of the CN-KCS combination. It prevents premature control of KCS, allows KCS to maintain independence and protects KCS’ financial health during the STB’s review of the ultimate combination of CN and KCS. Additionally, CN has committed to divesting the sole area of overlap between the CN and KCS networks – KCS’ 70-mile line between New Orleans and Baton Rouge – thereby making the combination a true end-to-end transaction, and has agreed to preserve existing route options by keeping gateways open on commercially reasonable terms. The proposed CN-KCS combination represents a pro-competitive solution that offers unparalleled opportunities for customers, employees, shareholders, the environment and the North American economy.
CN and KCS look forward to further comment from their stakeholders during the STB’s official public comment period on the voting trust application, which will be open until June 28, 2021, as they work towards gaining STB approval of their voting trust and completing their combination.