CN Rail lowers 2024 earnings forecast due to strike uncertainty

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Tracy Robinson,Earnings Growth,Canada Industrial Relations Board

Canadian National Railway Co. lowered its forecast for earnings growth Tuesday as it faces the threat of a worker strike.

The Montreal-based railway, which earned $1.11 billion in the second quarter, said it is seeing international customers route shipments away from Canadian ports in the face of continued labour uncertainty at the company.

"Starting late May we saw a sharp reduction primarily in our international volumes on concerns of a work stoppage," Robinson said. "This is volume destined to the U.S. that has shifted to U.S. ports. So we have lighter volumes in the third quarter than expected." Robinson said CN expects to have more certainty on the labour front after the CIRB issues its decision. She said the company's position on a collective agreement with its engineers and conductors has not changed in recent months — it is still looking to create a structure around work scheduling that would improve crew availability in light of new federal rules around mandatory work and rest rules for critical railway employees.

 

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