CANADIAN RAILWAY OFFICE OF ARBITRATION

& DISPUTE RESOLUTION

CASE NO. 3695

Heard in Montreal, Thursday, 11 September 2008 Concerning

CANADIAN NATIONAL RAILWAY COMPANY

and

TEAMSTERS CANADA RAIL CONFERENCE

EX PARTE

DISPUTE:

Awarding of “Conductor Only” Pension Credits at Moncton, New Brunswick as advertised on February 26, 2007 and September 6th, 2007.

UNION’S STATEMENT OF ISSUE:

On February 26, 2007, the Company advertised early retirement opportunities (Conductor Only Credits) in bulletin 3400-2 and 83 04 8 with a closing date of March 29, 2007 and effective date of April 29, 2007. Mr. D. Fitzgerald and Mr. D. Hache submitted bids on these opportunities as per Addendum 3C of Agreement 4.16, however, Mr. Fitzgerald and Mr. Hache were not awarded the advertised opportunities. It is the position of the Union, although not limited thereto, that the specific and identifiable circumstances existed at Moncton New Brunswick (North Terminal Seniority District) which required the Company to award the advertised early retirement opportunities. On September 06, 2007, the Company advertised early retirement opportunities (Conductor Only Credits) in bulletin M005 with a dosing date of October 15, 2007 and effective date of October 28, 2007. Mr. W. Savoie, Mr. M. Fowler and Mr. T. Reagan submitted bids on these opportunities as per Addendum 3C of Agreement 4.16, however, Mr. Savoie, Mr. Fowler and Mr. Reagan were not awarded the advertised opportunities. It is the position of the Union, although not limited thereto, that the specific and identifiable circumstances existed at Moncton New Brunswick (North Terminal 7th Seniority District) which required the Company to award the advertised early retirement opportunities. The Company disagrees.

FOR THE UNION:

(SGD.) G. ETHIER

GENERAL CHAIRPERSON, UTU

CROA&DR 3695

• 2 - There appeared on behalf of the Company: D. Gagné – Manager, Labour Relations, Montreal D. VanCauwenberg – Director, Labour Relations, Edmonton A. Daigle – Manager, Labour Relations, Montreal A. Durocher – Assistant Manager, CMC, Montreal And on behalf of the Union: D. Ellickson – Counsel, Toronto G. Gower – Acting General Chairman, Belleville P. Swim – Local Chairman, Moncton R. A. Beatty – Witness

AWARD OF THE ARBITRATOR

Having considered the positions of the parties and reviewed the materials filed

the Arbitrator is satisfied that the Union is partially correct in its position. I am satisfied

that there was a surplus of employees at Moncton in the spring of 2007 such as to

justify the assignment of one early retirement credit under the Conductor-Only

Agreement. Likewise, I am satisfied that in the fall of 2007 there was also a surplus,

such as to justify the assignment of two such credits.

To the foregoing the Arbitrator would simply add the following. On the basis of

the material reviewed, it would appear to this Office that the parties would greatly

benefit from a full and frank discussion of current difficulties with the Atlantic

Spareboard Agreement. Such discussions are obviously to be conducted and

presumably concluded on a without prejudice basis.

September 15, 2008 (signed) MICHEL G. PICHER ARBITRATOR