USWA contract at CPRail

July 3, 2006

Brothers and Sisters,

I have attached a news release from the USWA concerning their bargaining unit on CPRail. As you can see, they have signed an early agreement. They tell us that it is a three year deal, though they are not releasing any other details.

On CPRail, the company has subscribed for decades to the idea of pattern bargaining with its Unions. It has been my experience, that they sign "management friendly" contracts with those in the weakest bargaining positions and then attempt to force these substandard deals on everyone else.

We will no doubt hear about the pattern for wages already being set by the IBEW (3% in 2007, 4% in 2008 and 3% in 2009) and it will be even harder if the USWA has signed the same or worse. The USWA signed a weak deal last round, which included co-pay for benefits. The CAW, the CCROU (TCRC BLET) and the TCRC MWED all fought against this (and did not accept it) however, the IBEW came up behind and signed for it last year. Of course they also signed for lousy percentage increases on a 5 year deal and gave management the right to select Foremen.

We can hope that the USWA bargained a good contract for their membership this round, but their cloaking it in secrecy and signing after only a couple of meetings, as well as 6 months early, is not a good sign. As one member said to me, it looks like they are running scared. However, I will reserve judgement on this 'deal' until I see it.

The USWA and the IBEW are good International Unions. They are strong in many industries. However, on the railroad they do not have the numbers or the strength and influence that they have elsewhere. However, if we all work together... we all gain strength and influence and we all succeed.

Though the USWA leadership went in and bargained without any discussions with their sister Unions on the railroad, we are taking a different route. We have had a number of discussions with the TCRC BLET, insuring that we are on the same page with common issues and have scheduled more strategy sessions prior to their exchange of demands in September. We have also been talking with the CAW leadership concerning wages, pensions and benefits and we will be meeting regularly as bargaining progresses.

We firmly believe that to be most effective with negotiations, all the Unions at CPRail must work together. The company hits us from a united front, and yet for too many years we have been scattered, not only in bargaining but in strategy as well. Not all the other Union leaders would agree with this but if their membership is anything like ours, then their rank and file does. On the recent random phone survey of TCRC MWED, everyone polled believed that: "....if the rail unions are all negotiating and/or working together, a better contract will be achieved". Its just common sense, after all.

We are on the right track, working in concert with other rail Unions, and perhaps with time and/ or their elections, the few holdouts will come on board as well. Though we won't agree on everything, discussion is the place to start.

Fraternally,

Bill Brehl
President
TCRC MWED

CPR and United Steelworkers reach new agreement

Tuesday June 27, 6:55 pm ET

CALGARY, June 27 /PRNewswire-FirstCall/ - Canadian Pacific Railway (CPR) and the United Steelworkers (USW) representing 1,500 clerical workers and employees at intermodal facilities across Canada have reached a tentative three-year labour agreement.

The agreement, subject to ratification, will take effect January 1, 2007 and extend until the end of 2009. The tentative settlement includes improvements to wages and benefits as well as a number of work rule changes that will enhance work/life balance while, at the same time, help to improve productivity and manage costs.

Details of the agreement will be released once ratified.

About Canadian Pacific Railway

Canadian Pacific Railway is a transcontinental carrier operating in Canada and the U.S. Its 14,000-mile rail network serves the principal centres of Canada, from Montreal to Vancouver, and the U.S. Northeast and Midwest regions. CPR feeds directly into America's heartland from the East and West coasts. Alliances with other carriers extend its market reach throughout the U.S. and into Mexico. Canadian Pacific Railway is marking its 125th anniversary in 2006. For more information, visit CPR's website at www.cpr.ca.

Source: Canadian Pacific Railway