- Three local unions representing CN and KCS employees in the US have filed letters in support of the proposed voting trust
- The letters express support for CN’s and KCS’ voting trust from officers representing more than 1,700 locomotive engineers on CN’s United States
- The plain vanilla voting trust proposed by CN and KCS, which is identical to the CP trust approved by the STB
- CN is a world-class transportation leader and trade enabler
- Kansas City Southern (KSU) is a transportation holding company that has railroad investments in the U.S., Mexico and Panama
- Canadian National Railway is down 0.72 per cent, trading at C$130.32 per share at 3:45 pm ET
Three local unions representing CN and KCS employees in the US have filed letters supporting the proposed voting trust.
These letters were filed as part of the STB’s public comment period for its review of the CN-KCS voting trust, which will close at midnight today.
The letters express support for CN’s and KCS’ voting trust from officers including the General Chairmen of BLET General Committees of Adjustment 360, 390 and 910, which collectively represent more than 1,700 locomotive engineers on CN’s United States rail operating subsidiaries and approximately 200 engineers working on KCS.
With the submission of these four letters, BLET adds to the significant labour organization support for the approval of CN-KCS’ proposed voting trust.
CN-KCS have noted support for the voting trust from officers including the General Chairmen of SMART-TD General Committees of Adjustment 377, 433, and 987, which collectively represent over 1,800 conductors on CN’s United States rail operating subsidiaries, as well as International Brotherhood of Boilermakers (IBB).
The plain vanilla voting trust proposed by CN and KCS, which is identical to the CP trust approved by the STB, meets the test for approval:
- It prevents premature control of KCS
- It allows KCS to maintain independence during the STB’s review of the ultimate combination of CN and KCS
- It protects KCS’ financial health during this period
CN and KCS have taken additional steps to reinforce the pro-competitive nature of their combination beyond the scope of the voting trust approval.
Specifically, CN will divest 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.
CN and KCS have also 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 is a world-class transportation leader and trade enabler. Essential to the economy, to the customers, and to the communities it serves, CN safely transports more than 300 million tons of natural resources, manufactured products, and finished goods throughout North America every year.
Kansas City Southern (KSU) is a transportation holding company that has railroad investments in the U.S., Mexico and Panama.
Canadian National Railway is down 0.72 per cent, trading at C$130.32 per share at 3:45 pm ET.
