TEAMSTERS CANADA RAIL CONFERENCE CONFÉRENCE FERROVIAIRE DE TEAMSTERS CANADA

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1 TEAMSTERS CANADA RAIL CONFERENCE CONFÉRENCE FERROVIAIRE DE TEAMSTERS CANADA (Name) R.A. Beatty (Title) Président President (Name) (Title) Douglas Finnson Vice-Président Vice-President (Name) (Title) Harvey Makoski Secrétaire-Trésorier Secretary Treasurer November 17, (Address) Rue Albert Street Ottawa, City, Province, ON - K1P PCode 5G4 Tel: Tel: (613) ( ) Fax: Fax: (613) ( ) Website Ms. Kimberly A. Madigan, Vice-President Canadian National 935 de La Gauchetière Street West - Floor 15 Montreal, QC H3B 2M9 RE: Proposed Maintenance of Activities Dear Kim, Please find attached the TCRC's proposed Maintenance of Activities with respect to Section 87(4) 1 of Part 1 of the Canada Labour Code. Although the Union agrees and shares the optimism of CN as expressed by CN Spokesperson, Mr. Mark Hallman (re: his recent public comments) that a Memorandum of Settlement could be reached within the next few weeks we believe it is prudent however to resolve the Maintenance of Activities requirement at this time. The TCRC, although it believes there are no essential services to be maintained (as has been CN's position), is of the view that any economic hardships that are brought to bear should, if at all possible and without prejudice, first and foremost be borne by the respective negotiating parties. We believe that our proposed Maintenance of Activities would accomplish this. We believe that our Maintenance of Activities, should it be activated (which we don't believe will be required during the current round of bargaining), will address internal concerns of the impact of a legal strike/lockout. We believe it also demonstrates our willingness to consider the impact of a legal strike/lockout on those not directly involved in our negotiations (e.g. grain, chemical and forestry industries). If you are in agreement with our proposal please sign and send back to us and we will file such as required by the Code. /2

2 Kimberly A. Madigan November 17, 2014 Page 2 Thanking you in advance for your time and consideration to this most important matter, Sincerely yours, Rex Beatty President TCRC RB/lr cc : Joe Torchia, CN Jean-Michel Hallé, GC CNE LE Bruce Willows, GC CNW LE Randy Caldwell, GC CNC LE William Michael, GC VIA

3 TEAMSTERS CANADA RAIL CONFERENCE CONFÉRENCE FERROVIAIRE DE TEAMSTERS CANADA R.A. Beatty Président President Douglas Finnson Vice-Président Vice-President Harvey Makoski Secrétaire-Trésorier Secretary Treasurer November 17, Rue Albert Street Ottawa, ON - K1P 5G4 Tel: (613) Fax: (613) AGREEMENT BETWEEN: TEAMSTERS CANADA RAIL CONFERENCE - and - CANADIAN NATIONAL RAILWAY COMPANY AGREEMENT ON MAINTENANCE OF ACTIVITIES WHEREAS Canadian National Railway Company (hereinafter referred to as CN ) has previously advised the TCRC (and/or its predecessor(s)) that CN does not possess the expertise or ultimate authority to define such services as contemplated under Section 87.4 (1) of the Canada Labour Code (the Code ) and, WHEREAS the TCRC and CN have commenced bargaining on October 28th, 2014 consistent with the Code for Locomotive Engineers covered by agreements 1.1, 1.2 and agreements for Locomotive Engineers on the former B.C. Railway and Locomotive Engineers and Tour Attendants on the former Algoma Central Railway. AND WHEREAS the parties rights to legally strike and lockout action, respectively, as provided by Part 1 of the Code, has previously been the subject of legislation to restrict and/or prevent such legal strike/lockout action; AND WHEREAS the TCRC and CN view such enacted legislation as a determination by the Government of Canada of the services to be maintained in satisfaction of the requirements of Section 87.4 (1) of the Code; /2

4 November 17, 2014 Page 2 AND WHEREAS it is the shared intent of the TCRC and CN to maintain such essential services as contemplated by Section 87.4 (1) of the Code so as to not unduly negatively impact the Canadian economy; AND WHEREAS the TCRC and CN mutually desire to work within and apply the spirit and intent of Section 87.4 (1); AND WHEREAS the Members of the TCRC and the Management of CN Rail desire to be considered and viewed as responsible to the needs of Canada; THEREFORE the TCRC and CN Rail agree to the following Maintenance of Activities in compliance with Section 87.4 (1) of the Code; 1. Within 24 hours of the time of first introduction of legislation by the Government of Canada which in any way, directly or indirectly, is designed to restrict or prevent the TCRC and/or CN the right to free collective bargaining as provided by the Code (including the right to strike/lockout and implement changes in working conditions etc. as the case may be), the TCRC and CN shall resume all services subject to the terms and conditions provided in the most recent Collective Agreements (i.e., Collective Agreements 1.1, 1.2 and the agreement covering Locomotive Engineers on the former BC Rail and Locomotive Engineers and Tour Attendants on the former Algoma Central Railway, respectively) save and except for the conditions provided in this Agreement. The resumption of all services under this Agreement shall be considered the activation of this Agreement for the purposes of the implementation of the following terms. The resumption of services under each Collective Agreements shall continue either until final resolution of Collective Bargaining (i.e., until such time as the parties have renewed the Collective Agreement(s)) or until 30-day advance written cancellation notice has been given by either party (per paragraph 6 below). 2. In maintaining such service as provided in paragraph 1, employees of CN (the members of the TCRC as noted herein) shall donate, by Company deduction, 10% of their gross pay on all basic hourly, daily, weekly, bi-weekly, monthly, mileage and flat rates of pay as presently provided for in the Collective Agreement(s) to those charities as noted in paragraph 4 herein. 3. In maintaining such service as provided in paragraph 1, CN shall continue all operations so as not to adversely impact the noted Collective Agreement(s) and during such time period shall donate 10% of its total revenues received, and notify the TCRC of such properly calculated amounts, to those charities as noted in paragraph 4 herein. /3

5 November 17, 2014 Page 3 4. The 10% gross pay and the 10% total revenue calculations, as provided in paragraphs 2 and 3 respectively, shall be combined and distributed as follows; a. 25% to be donated on behalf of the TCRC and CN to Toronto Sick Kids Hospital; b. 25% to be donated on behalf of the TCRC and CN to the Canadian Breast Cancer Foundation; c. 25% to be donated on behalf of the TCRC and CN to the Autism Society Canada; and d. 25% to be donated on behalf of the TCRC and CN to the town of Lac Magantic, Quebec to assist in the renewal and rebuilding of said community. 5. In the event the TCRC and CN do not enter into the renewal of the above noted Collective Agreements within 30 calendar days of activation of this Maintenance of Activities Agreement the percentages of gross pay and total revenues, as identified in paragraphs 2 and 3 shall thereafter be increased to 20% respectively. This increase shall take effect following the 30 th calendar day of the renewal of services described in paragraph 1, above. The 20% gross pay and the 20% total revenue calculations shall be combined and distributed in the manner as set out in paragraph 4 above. 6. It is understood and agreed that either the TCRC or CN may cancel this agreement in writing after the expiration of 30 calendar days from the date of activation of said agreement. Such cancellation is subject to a 30 calendar day written notice to the other with such written notification provided to the Canada Industrial Relations Board. 7. In the event cancellation has been received by either the TCRC or CN, as provided for in paragraph 6, neither party shall be entitled to exercise its right to strike, lockout and/or alteration of working conditions (as the case may be) until such time as a new Maintenance of Activities Agreement has been properly entered into as required by Section 87.4 of Part 1 of the Code. 8. The TCRC and CN, by entering into this Agreement hereto for the Maintenance of Activities in compliance with Section 87.4 (1) of the Code agree and acknowledge that such Agreement is legally binding and as such enforceable by either party pursuant to sections 87.4(3) and 66 of the Code. /4

6 November 17, 2014 Page 4 DATED on this 17th day of November FOR THE UNION: FOR THE COMPANY: Rex A. Beatty, President - TCRC

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