CN to implement wage increase and aligned mileage caps for its locomotive
engineers in Canada after negotiations end without settlement

MONTREAL, Nov. 23 /CNW Telbec/ - CN (TSX: CNR)(NYSE: CNI) today gave the Teamsters Canada Rail Conference (TCRC) notice of its plan to increase wage rates and apply a change to the mileage caps for the company's locomotive engineers the union represents in Canada on CN. CN is taking the step after collective bargaining with the TCRC ended Nov. 20 without a settlement. The contract changes are to take effect 0001 hours Nov. 28. The TCRC's current labour agreement with CN expired Dec. 31, 2008.

CN had informed the union over the weekend of its intention to increase the engineers' wages by 1.5 percent and implement only one work rule change. Today, TCRC-represented conductors have a 4,300-mileage cap limitation, and TCRC-represented engineers have a 3,800-mile cap. With this work rule change, both groups of employees working in the locomotive cab will be working under one consistent rule, and the engineers will see an overall increase in their compensation. On average, CN's locomotive engineers presently work between 15 and 17 days per month.

CN regrettably reached an impasse with the TCRC after bargaining in good faith with the union for more than a year, and has decided to invoke these contractual changes to move the company forward. CN has made several different offers to resolve these collective agreements, all of which have been rejected by the TCRC. CN also offered to refer the matters in dispute to binding arbitration, but the TCRC rejected this option as well. CN still prefers to achieve agreements with the TCRC without a labour disruption.

Under terms of the Canada Labour Code, the TCRC and CN are entitled to engage in a strike or lockout upon 72 hours' notice to the other party.

Forward-Looking Statements

This news release contains forward-looking statements. CN cautions that, by their nature, forward-looking statements involve risk, uncertainties and assumptions. Implicit in these statements, particularly in respect of long-term growth opportunities, is the Company's assumption that such growth opportunities are less affected by the current situation in the North American and global economies. The Company cautions that its assumptions may not materialize and that the current economic conditions render such assumptions, although reasonable at the time they were made, subject to greater uncertainty. The Company cautions that its results could differ materially from those expressed or implied in such forward-looking statements. Important factors that could cause such differences include, but are not limited to, the effects of adverse general economic and business conditions, including the current deep recession in the North American economy and the global economic contraction in 2009, industry competition, inflation, currency and interest rate fluctuations, changes in fuel prices, legislative and/or regulatory developments, compliance with environmental laws and regulations, actions by regulators, various events which could disrupt operations, including natural events such as severe weather, droughts, floods and earthquakes, labor negotiations and disruptions, environmental claims, uncertainties of investigations, proceedings or other types of claims and litigation, risks and liabilities arising from derailments, and other risks detailed from time to time in reports filed by CN with securities regulators in Canada and the United States. Reference should be made to "Management's Discussion and Analysis" in CN's annual and interim reports, Annual Information Form and Form 40-F filed with Canadian and U.S. securities regulators, available on CN's website, for a summary of major risks.

CN assumes no obligation to update or revise forward-looking statements to reflect future events, changes in circumstances, or changes in beliefs, unless required by applicable laws. In the event CN does update any forward-looking statement, no inference should be made that CN will make additional updates with respect to that statement, related matters, or any other forward-looking statement.

CN - Canadian National Railway Company and its operating railway subsidiaries - spans Canada and mid-America, from the Atlantic and Pacific oceans to the Gulf of Mexico, serving the ports of Vancouver, Prince Rupert, B.C., Montreal, Halifax, New Orleans, and Mobile, Ala., and the key metropolitan areas of Toronto, Buffalo, Chicago, Detroit, Duluth, Minn./Superior, Wis., Green Bay, Wis., Minneapolis/St. Paul, Memphis, and Jackson, Miss., with connections to all points in North America. For more information on CN, visit the company's website at


For further information: For further information: Media: Mark Hallman, Director, Communications & Public Affairs, (905) 669-3384; Investors: Robert Noorigian, Vice-President, Investor Relations, (514) 399-0052

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