The Collective Agreements between the Company and the Teamsters Canada Rail Conference will be renewed for a period of four years commencing January 1st, 2003.


Increases to apply on all basic hourly, daily, weekly and mileage rates of pay.

  • 2% increase retroactive to Jan. 1, 2003
  • 3% increase retroactive to Jan. 1, 2004
  • 2.5% increase retroactive to Jan. 1, 2005
  • 3% increase effective Jan. 1, 2006


In addition to the annual percentage increases as outlined above, there will be an increase to the basic hourly rates of pay for all employees in Yard Service

  • $0.25/hour increase retroactive to December 31, 2004
  • $0.25/hour effective December 31, 2005


Include a letter in regards to step rates pertaining to employees with previous work experience; Reference Letter #1 – Training Protocol


  • Effective January 1, 2005 the pension formula shall be increased for employees who are represented by the Union to 1.7% of the members Highest Plan Earnings up to the Average Yearly Maximum Pensionable Earnings (YMPE).
  • Effective January 1, 2005 increase the pension contribution formula for employees who are represented by the Union to 7.19% for earnings up to the YMPE.
  • Employees retiring on or after January 1, 2005 will have the option to choose an 80% or 100% survivor benefit on an actuarial reduced basis.
  • Include a letter concerning consent; subject to the statutory Grandfathering of accrued benefits. Reference Letter #2 Consent.
  • Include a letter recognizing the application of Checkerboard; Reference Letter #3 Checkerboard.

Questions & Answers – Pension Issues Attached.


Plan Document Amendment

a) Immediately upon ratification of this settlement, update the appropriate documents to reflect the following benefit terms.


b) In addition to the following, the parties commit to work on the existing Benefit Plan Documents in an effort to clarify to the point there is no ambiguity as to the benefits provided therein.


Group Life Insurance


  • Effective first of the month following ratification                 $35,000.00
  • Effective January 1, 2006
  •                                                 $36,000.00
    • Effective the first of the month following ratification, the benefit in the case of work related accidental death will be a $100,000.00 death payment.
    • Current provisions of the AD&D Benefit Plan will remain unchanged.


Weekly Indemnity (Sickness) Benefits


Effective first of the month following ratification.             70% of weekly base pay up to a maximum weekly benefit of $570.

Effective January 1, 2006.                                             70% of weekly base pay up to a maximum weekly benefit of $580.


Effective first of the month following ratification, in the case of day surgery, coverage will commence from the first day of disability.


Effective the first of the month following ratification, Weekly Indemnity Benefits will be terminated as of the date lay-off starts, provided that when subject to lay-off, the employee has been advised in writing of lay-off prior to the beginning of illness or injury.  The benefits claim will be reinstated when recalled if, at that time, the disability continues to exist.


Life Insurance Upon Retirement


An employee who retires from the service of the Company subsequent to January 1, 2005, will, provided they are fifty five years of age or over and have not less than ten years' cumulative compensated service, be entitled, upon retirement, to a $7,000.00 life insurance policy, fully paid up by the Company.


Dental Plan


  • Use dental fee guides for current year from date of ratification and Jan.1, 2006.
  • Effective January 1, 2006, scaling will be limited to eight units for each plan and eligible dependant member per calendar year. 

Extended Health and Vision Care Plan

Effective the first of the month following ratification, amend the plan to base reimbursement entitlement of medication on the cost of the appropriate generic drug where less expensive than the brand name drug. A generic drug is defined as a drug which is identical or equivalent to a brand name drug in dosage, strength, route of administration, quality, performance characteristics, and intended use to a corresponding patent brand name drug.  Note - Brand name drugs are covered if no generic drugs are available.

Effective the first of the month following ratification specify that charges for blood testing monitor equipment, standard syringes, needles and diagnostic aids, and other supplies required for the treatment of diabetes will be covered including supplies for insulin injection pumps.  (Charges for cotton swabs, rubbing alcohol, automatic jet injectors, insulin injection pumps and similar equipment are not covered.)

In relation to paramedical services, modify the language to provide a yearly maximum of $500 for each discipline.


Basic Extended Health Care Plan Upon Retirement

Upon ratification of this settlement, for employees who retire on or after that date, replace the current Health Care Plan with a new Health Spending Account (HSA) as per the Reference letter #4. At employees option for 2 years after Jan. 1, 2005.


Employees who have been laid off due to reduction of staff will receive 15 days notice by registered mail when being recalled for service.

Employees will be recalled for a minimum of 35 consecutive calendar days. Employees will be given a 10-day notice of lay off in writing.  In the event of a strike or work stoppage by employees at Canadian Pacific Railway, a shorter lay off notice and recall period may be given.

Reference Letter #5.


Time will be computed from the time pay ceases on the incoming trip until the time the crew member either takes control of their train or locomotives for the working trip, or when deadheading, actual departure from the terminal.

At locations identified by the General Chairmen, the Company shall supply the General Chairmen with a quarterly report of heldaway by Division, which will include specific examples of the heldaway issues. The appropriate General Chairmen, General Manager and AVP Network Manager Centre will meet in the interest of addressing same, at the request of the Union.

Change the reference from “minimum passenger rate” to “minimum freight rate” for Engineers East and West.


Reference Letter #6 – Annual Vacation Allotment

Reference Letter #7 – Days Worked or Available

Effective January 01, 2005 annual vacation for all employees (Road and Yard) will be paid on a percentage basis as per the rules for road service.


Locomotive Engineers

Establish a provision for Locomotive Engineer Regional and National seniority. Reference Appendix C Locomotive Engineer Seniority

Trainmen – West & East

Reference Appendix D - Western Regional Seniority

Reference Appendix E – Eastern Master Regional Agreement

Establish National Seniority agreements linking Eastern and Western Regions

Trainmen wishing to transfer between the eastern and western regions will be handled on an individual case by case basis ensuring no layoffs results.

Provide post June 8, 1990 trainmen with benefits when required to work at another terminal within their district.


Weekly crew change will take place each Sunday at 2201 to be effective 0001 Monday.


Update and modernize training language, with associated improvements in all four collective agreements.

  • Modify the trainman-training program to make it more effective.
  • Establish Coaching Program.
  • Increase Trainman Trainee wages.
  • Increase Trainer payment for training and familiarization.
  • Establish a $1,000.00 incentive payment to employees who enter phase four of Engineer Training for those employees performing OJT Engineer Training.
  • RQ Training rates retroactively increased as per the general wage increases.

Reference Letters 9,10, and 11.


Reference Letter #12 – Closed period process.


Include a process for dealing with excessive runarounds letter #13 – Runaround.


In line with defined terms and conditions, including a notice period and local input, allow expanded crew change points to relieve/stage trains as a single tour of duty.


Payment for such work to be based on dual method of pay as a trip within a trip and, where applicable, be made in addition to the fixed mileage, and/or minimum day.


A new article will be created in all four Collective Agreements and in addition Questions and Answers contained in Appendix G will be included within Collective Agreement.


Provide for a single locomotive engineer on all assignments in GO Transit Commuter Service effective the Spring change of card 2005. One early retirement packages as per the VIA formula to be provided for each affected position. Reference Letter #14.


Resolve issues as per Reference Letter #15.

16. TCS

Include a letter for a closed period commitment to jointly review and, where appropriate, pilot alternatives to TCS on a trial basis that address the concerns of all parties. Reference Letter #16.


The Company and the Union acknowledge that they will support Employment Equity plans that have been developed in consultation with the Union to address employment.

18. REST

Include a letter that would provide a process to resolve identifiable abuse of the “in and off duty” provision of the Rule which would include the appropriate General Chairs, General Manager Field Operations, and General Manager, NMC. Reference Letter #17


Modify the article on bereavement leave to allow five (5) days bereavement leave for spouse, child, stepchild, or parent.


Include a return to work article in the collective agreements. Review existing local committees and re-establish appropriate training.


Update language and include timelines for the printing of Collective Agreements.


Delete Engineer East Ontario district rule 14.


Include a letter committing to address issues regarding Montreal Commuter service; Reference Letter #18.


Closed period commitment to discuss establishing the ability to bank certain payments. Reference Letter #19


a) Closed period commitment to renew efforts regarding the cab committee.

Reference letter #20


Increase the automobile mileage allowance rate from 28 cents per kilometer to 30 cents per kilometer.


Items pertaining to the final settlement of demands, subject to ratification by the TCRC bargaining unit membership.

Questions & Answers – Pension Issues


  1. What is Checkerboard?


A. Checkerboard is a method of administering pension plan benefits for employees who transfer between different organizations in the Company during the course of their career.  This means actually transferring between organizations that have different pension plan provisions, not a transfer that has taken place because of a transfer of bargaining rights between unions.


2.      How does Checkerboard work?


A. Upon retirement, Checkerboard results in applying  each such organization’s current pension formula to all blocks of service that an employee is deemed to accumulate during the course of their career with such organization.  For example, a person enters the service as a maintenance of way employee on January 1, 1998 and they remain there for four years before transferring to the running trades.  Upon retirement, without checkerboard in place the value of the employee’s pension for service while in the maintenance of way department would be based on the formula that was in place at the time when the maintenance of way service was accrued.  In other words, the four years could be at a 1.3% pension formula even though the union for maintenance of way employees and the TCRC may both have subsequently negotiated pension improvements.  With Checkerboard in place, the four years while in the maintenance of way department would be based on the formula that applies to maintenance of way employees at the time the employee retires.


3.      Why did the parties agree to implement Checkerboard?


A. Prior to 1998, all employees in the Company had common pension provisions.  Subsequent to that point, different provisions have been implemented for various unions and management.  Key dates were established to manage diversity between the different organizations.  Checkerboard was agreed to because of a need to ensure that employees who transfer between organizations within the Company over the course of their career are not disadvantaged upon retirement. 


  1. What are the key dates and how do they work?


A. On an employee’s key date all past service is deemed to be associated with the organization they are within.  For example, a running trades employee with three years service in the Maintenance of Way department between 1980 and 1983, and who subsequently transfers to the running trades, will have all past service deemed to be TCRC service because the employee was working in the running trades on the TCRC key date of January 1, 1999.

The key dates for each group are as follows:



Key Date


Jan. 1, 1998


Jan. 1, 1999


Mar. 1, 1999


Apr. 1, 1999


Jan. 1, 2000


Jan. 1, 2000


Jan. 1, 2001


  1. If I have split Company service (i.e. worked for the Company, left for three years and hired on again) will Checkerboard impact me?


A. No, checkerboard will have no impact on this aspect of your pension


1. When reinstating the consent provision for unreduced early retirement benefits, what does it mean when it states that it is “subject to statutory grand-fathering of accrued benefits”?


A.  Simply this means that the benefits owed to employees as of the date of reinstatement of consent (December 30, 2004) remain in place. An example is provided below.


As at December 1, 2004, an employee is 54 years old with 31 years of service.  On January 15, 2005, the employee resigns.


Without grandfathering, the employee would not be able to take a pension but

would be required to wait until age 55.  At that time, such a pension would

be actuarially reduced for 10 years (approximately 60%) using the 1.7% formula.


With grandfathering, the employee is eligible for their grandfathered benefits. Grandfathered benefits are the benefits in place as at December 30, 2004. In this case, the employee would be able to take an unreduced pension using the 1.6% formula applied to their pensionable service to December 30, 2004, commencing at age 55.  Alternatively, the employee would be able to take a pension commencing at age 54, actuarially reduced for one year.