Pact renews hourly rate agreement on former IC, CCP for the first time

CN announced today that members of the United Transportation Union (UTU) employed on its former Illinois Central and Chicago, Central & Pacific properties in the Midwest and Southern U.S. have renewed—for the first time—an hourly rate agreement for conductors and brakemen. The four-year labor pact, covering approximately 600 employees, is retroactive to Aug. 1, 2006, and runs through July 31, 2010.

Kim Madigan, CN vice-president of Labor Relations, said: ‘CN is pleased that the UTU membership has ratified this agreement and thanks the UTU leadership for their support of it.

Both parties appreciate how this new type of agreement not only improves CN operations and customer service, but also our employees’ compensation and quality of life.’

The hourly rate of compensation for operating employees is a break from traditional railroad mileage- and rules-based pay systems. The hourly rate concept enhances employee productivity while giving UTU members a better balance between work and home lives.

CN has hourly rate agreements in place for virtually all of its U.S. train and engine employees.