MEMORANDUM OF SETTLEMENT - Teamsters Canada

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MEMORANDUM OF SETTLEMENT - Teamsters Canada Powered By Docstoc
					           MEMORANDUM OF SETTLEMENT

                         DATED

                  Calgary, December 8, 2012

                       BETWEEN

                   CANADIAN PACIFIC
         (hereinafter referred to as the Company)

                         and the

      TEAMSTERS CANADA RAIL CONFERENCE
     MAINTENANCE OF WAY EMPLOYEES DIVISION
          (hereinafter referred to as the Union)

                     CONCERNING

APPLICATION OF WAGE INCREASES AND OTHER CHANGES
   COVERING THE YEARS 2013, 2014, 2015, 2016, 2017



                   December 8, 2012


                        Page 1 of 45
1. TERM OF CONTRACT

  The Collective Agreement between the Company and the Union will be extended for a
  period of five (5) years commencing January 1, 2013 through to December 31, 2017.

  Amend Article 22.5 to read:

  22.5   This agreement, effective January 1, 2013, as amended and updated, shall remain
         in full force and effect until December 31, 2017, and thereafter, subject to six months
         notice in writing from either party to this Agreement of its desire to revise, amend or
         terminate it. Such notice may be served at any time subsequent to June 30, 2017.


2. WAGES

  Fifteen percent (15%) over the five year term as follows:
  (15.9% compounded)

  a) Effective January 1, 2013, increase by 3% the rates in effect on December 31, 2012.
     Note: In recognition of an early signing prior to the expiry of the contract, the Company
     will institute the 3% general wage increase effective with the date of the signing of this
     agreement, instead of on January 1, 2013.

  b) Effective January 1, 2014, increase by 3% the rates in effect on December 31, 2013.

  c) Effective January 1, 2015, increase by 3% the rates in effect on December 31, 2014.

  d) Effective January 1, 2016, increase by 2% the rates in effect on December 31, 2015.
     Note: In recognition of the five year duration of this contract, the Company agrees to
     add a 1% general wage increase effective January 1, 2016, in addition to the 2% noted
     above.

  e) Effective January 1, 2017, increase by 2% the rates in effect on December 31, 2016.
     Note: In recognition of the five year duration of this contract, the Company agrees to
     add a 1% general wage increase effective January 1, 2017, in addition to the 2% noted
     above.

  f) Refer to Appendix A of this Memorandum of Settlement for General Wage Increase
     information.

  Shift Differential - Change Article 2.21 to read:




                                            Page 2 of 45
     Effective August 1, 2007, employees whose regularly assigned shifts commence
     between 1400 and 2159 hours shall receive a shift differential of $0.80 per hour, and,
     employees whose regularly assigned shifts commence between 2200 and 0559 hours
     shall receive a shift differential of $1.05 per hour. Overtime shall not be calculated on
     the shift differential nor shall the shift differential be paid for paid absence from duty
     such as vacation, general holidays, etc.

3. PENSION

  a) Appendix “K” of the Job Security Agreement – Pension Buyback
     Not renewed - Delete Appendix K.

  b) Pension Plan Changes

     The changes will be presented to the Pension Committee. The union and management
     representatives on the Pension Committee shall vote to approve and enact the changes
     detailed by this agreement at the earliest possible meeting.

     a) For existing employees hired prior to January 1, 2013,

        i.   Annual pension accrued in respect of pre-January 1, 2013 pensionable service
             will be subject to a limit of $1,975 per year of pensionable service.

        ii. Accrued pension benefits earned prior to January 1, 2013 will be
            “grandfathered” if above the $1,975 pension cap.

        iii. For pensionable service on or after January 1, 2013, the Canadian Pacific
             Pension Plan provisions will be modified to incorporate:

             1. Annual pension will be subject to a limit of $1,975 per year of pensionable
                service.

        iv. For pensionable service on or after January 1, 2013, the employee contribution
            rates and benefit accrual rate will remain unchanged.

        v. There will be no escalation of the maximum pension limit ($1,975) noted above,
           unless otherwise changed by some mechanism such as a Pension Plan
           Improvement Account concept.


     b) For employees hired on or after January 1, 2013,

        i.   Annual pension will be subject to a limit of $1,715 per year of pensionable
             service.




                                           Page 3 of 45
           ii. The benefit accrual rates shall be 1.7% up to the Average Years Maximum
               Pensionable Earnings and 2.0% above.

           iii. There will be no escalation of the maximum pension limit ($1,715) noted above
                unless otherwise changed by some mechanism such as a Pension Plan
                Improvement Account concept.

           iv. The Member contribution rate will be 4.3% up to the Years Maximum
               Pensionable Earnings and 6.3% above.

      Changes associated with items a) & b) above are reflected in Appendix B of this MOS.


      c)      Pension Plan – Improvement Account Concept
              Refer to Appendix C of this MOS.


It is understood that changes to the Canadian Pacific Pension Plan do not form part of the
Collective Agreement and are subject to the approval of the Pension Committee and the Board
of Directors.

      d)      Article 14.04 (f) – Add the following language:

              If there is a shortfall in a Member’s contributions, the Company must advise the
              member as soon as possible but in no case should such advisement be longer
              than 10 years from the time of shortfall. If the advisement is outside of the 10
              year period, the Company must assume the shortfall costs.


4. GOALSHARE

   a) Delete current Appendix A – 9. The Goalshare Program is not renewed.


5. BENEFITS

   Health Spending Account for Retirees

   Modify the current provisions for Health Spending Account (HSA) provided to employees
   who hire on or after January 1, 2013, as follows:

   1. Annual amount of $45 per complete year of pensionable service (to a maximum of 35
      years) less 15 years. For clarity, the maximum annual amount is 20 years x $45/year =
      $900.

   2. Annual amount is available until the employee reaches the age of 65.

                                            Page 4 of 45
3. In the case of death of the retiree, 55% of the HSA amount will be available to the
    spouse until the time when the retiree would have reached age 65.
Life Insurance & Disability Benefits

The Group Term Insurance Policy and the Disability Benefit Plan for employees
represented by the Teamsters Canada Rail Conference – Maintenance of Way Employees
Division, Plan 84500, effective January 1, 2010, will be further amended as follows in
respect of employees covered by this Memorandum of Settlement:

Life Insurance

a) Effective January 1, 2013, the group life insurance coverage will be increased from
   $46,000 to $47,000 for employees who have service with the Company on or
   subsequent to that date.

b) Effective January 1, 2014, the group life insurance coverage will be increased from
   $47,000 to $48,000 for employees who have service with the Company on or
   subsequent to that date.

c) Effective January 1, 2015, the group life insurance coverage will be increased from
   $48,000 to $49,000 for employees who have service with the Company on or
   subsequent to that date.

d) Effective January 1, 2016, the group life insurance coverage will be increased from
   $49,000 to $50,000 for employees who have service with the Company on or
   subsequent to that date.

e) Effective January 1, 2017, the group life insurance coverage will be increased from
   $50,000 to $51,000 for employees who have service with the Company on or
   subsequent to that date.


Disability Benefits

a) Effective January 1, 2013, the maximum benefit will be increased to $660.00.

b) Effective January 1, 2014, the maximum benefit will be increased to $680.00.

c) Effective January 1, 2015, the maximum benefit will be increased to $690.00.

d) Effective January 1, 2016, the maximum benefit will be increased to $700.00.

e) Effective January 1, 2017, the maximum benefit will be increased to $710.00.




                                        Page 5 of 45
f) Effective January 1, 2013, extend the continuation of coverage for Extended Health
   Care, Dental and Basic Life Insurance up to 41 weeks provided the employee is
   receiving short-term disability benefits.

Dental Plan

The Group Dental Plan for employees represented by the Teamsters Canada Rail
Conference – Maintenance of Way Employees Division, Plan 84500, effective January 1,
2010, will be further amended as follows in respect of employees covered by this
Memorandum of Settlement:

a) Modify the provision concerning covered expenses as follows:

   i) Effective with treatment which commenced on or after January 1, 2013, covered
      expenses will be defined as the amounts in effect on the day of such treatment, as
      specified in the relevant provincial Dental Association Fee Guides for the year 2013
      or in the absence of same, the amount deemed reasonable by the Plan’s insurer.

   ii) Effective with treatment which commenced on or after January 1, 2014 covered
       expenses will be defined as the amounts in effect on the day of such treatment, as
       specified in the relevant provincial Dental Association Fee Guides for the year 2014
       or in the absence of same, the amount deemed reasonable by the Plan’s insurer.

   iii) Effective with treatment which commenced on or after January 1, 2015 covered
        expenses will be defined as the amounts in effect on the day of such treatment, as
        specified in the relevant provincial Dental Association Fee Guides for the year 2015
        or in the absence of same, the amount deemed reasonable by the Plan’s insurer.

   iv) Effective with treatment which commenced on or after January 1, 2016 covered
       expenses will be defined as the amounts in effect on the day of such treatment, as
       specified in the relevant provincial Dental Association Fee Guides for the year 2016
       or in the absence of same, the amount deemed reasonable by the Plan’s insurer.

   v) Effective with treatment which commenced on or after January 1, 2017 covered
      expenses will be defined as the amounts in effect on the day of such treatment, as
      specified in the relevant provincial Dental Association Fee Guides for the year 2017
      or in the absence of same, the amount deemed reasonable by the Plan’s insurer.

   vi) For the Province of Alberta, the Fee Guide stated above shall be the Alberta
       Representative Guide and will be made available to the TCRC-MWED Membership
       as published yearly by the Company.

b) Effective January 1, 2013, increase the annual maximum from $1,525 to $1,625.

c) Effective January 1, 2014, increase the annual maximum from $1,625 to $1,725.



                                        Page 6 of 45
d) Effective January 1, 2017, increase the annual maximum from $1,725 to $1,825.

e) On the first of the month following the effective date of the new collective agreement,
   new employees shall become eligible for dental benefits on the first day of service.

Extended Health & Vision Care Plan

The Extended Health and Vision Care Plan for employees represented by the Teamsters
Canada Rail Conference – Maintenance of Way Employees Division, Plan 84500, effective
January 1, 2010, will be further amended as follows in respect of employees covered by
this Memorandum of Settlement:

a) Effective January 1, 2013, the maximum amount for chargeable expenses for vision
   care will be increased from $250.00 to $275.00 (coverage will remain at 80%) in any 18
   month period for persons under the age of 18 and in any 24 month period for persons
   age 18 and over.

b) Effective January 1, 2013, increase the coverage amount in the Extended Health care
   Benefits, Section 6.6 (a) from $200 to $500.

c) Effective January 1, 2013, include Speech Therapist in the Extended Health care
   Benefits, Section 6.6 (g).

d) On the first of the month following the effective date of the new collective agreement,
   new employees shall become eligible for extended health and vision benefits on the first
   day of service.


Cost Neutral Drug Card

a) The terms of such are contained in Appendix D of this MOS – Drug Card Renewal
   Letter

b) The parties agree that the cost neutral drug card will be subject to a stand-alone
   ratification, separate and apart from the remainder of this MOS.


Benefits General

a) Effective January 1, 2013, or as soon thereafter as it may be arranged, the various
   contracts and policies provided in the Employee Benefit Plan Supplemental Agreement
   and attached as Appendices to the Dental Plan and the Extended Health & Vision Care
   Plan will be amended in conformity with the aforementioned changes.




                                        Page 7 of 45
6. JOB SECURITY AGREEMENT

  a) Modify Appendix E of the Job Security Agreement

       i)        The annual contribution of $35,000.00 will be suspended for the term of this
                 contract. Reference Articles 4.1 (c). Modify Article 4.1 (c) accordingly.

       ii)       Redirect 1% of the gross monthly payroll for all employees represented by the
                 TCRC – MWED employed in Canada. Reference Articles 4.1 (b). Modify Article
                 4.1 (b) accordingly to reflect new Appendix M.

                 Refer to Appendix E of this MOS.

       iii)      Modify Appendix i of the ES EB & ES SUB Agreements. (page 96 & 120) to
                 reflect new Appendix M


7. WORK RULES

  a)        Modify Article 2.5 – Compensation for Foremen

            Compensation for Foremen

            2.5 A Bridge and Structures Foreman whose gang is increased to twenty employees
                or more, for the supervision of whose work they are responsible, shall receive
                sixty (60) cents per hour in addition to their regular rate of pay.

                 Note: When, during overtime hours, the gang is twenty (20) employees or
                       more, overtime will be based on the regular daily rate of the foreman plus
                       sixty (60) cents. When, during overtime hours, the gang is less than
                       twenty (20) employees, overtime will be based on the regular daily rate.


  b)        Modify Article 2.6 – Compensation for Foreman

            2.6 A Track Maintenance Foreman required to leave their own section gang or put in
                charge of a combination of more than two section gangs shall be paid the rate of
                Track Maintenance Foreman 8 or more employees.

  c)        Delete Article 2.7. Renumber items 2.8 through 2.26 to items 2.7 through 2.24.



                                              Page 8 of 45
d)   Modify Section 2.24, formerly 2.25 – Direct Deposit of Paycheques

     Direct Deposit of Paycheques

     2.25 Employees will be paid every other Thursday in accordance with the
          Memorandum of Agreement dated April 30, 1992. The Company shall at the
          time of making any payment of wages to an employee, furnish the employee with
          a statement in writing. This may also be done electronically with the employee’s
          permission.

          Employees with a date entered service prior to December 31, 2012 that have
          opted for electronic delivery of their pay notice must remain with electronic
          delivery.


e)   Modify Article 4.4 (c) – General Holidays:

     Modify Article 4.4(c) as follows:

     4.4 (c)   must be entitled to wages for at least ninety-six (96) regular hours during the
               thirty (30) calendar days immediately preceding the general holiday. This
               Article (c) does not apply to an employee who is required to work on the
               holiday.

               Note:    Provided that an employee is available for work on the general
                        holiday, absences from scheduled shifts or tours of duty because of
                        bona fide injury, hospitalization, illness for which the employee
                        qualifies for weekly sickness benefits and authorized maternity
                        leave will be included in determining the ninety-six (96) hours
                        referred to in Article (c).


f)   Modify Article 4.6 – General Holidays

     4.6 An assigned employee qualified under Article 4.4 and who is not required to work
         on a general holiday shall be paid at the regular number of hours as their regular
         assignment at the straight time rate of pay.


g)   Modify Article 4.7 – General Holidays



                                         Page 9 of 45
     4.7 An unassigned or spare employee qualified under Article 4.4 and who is not
         required to work on a general holiday shall be paid at the straight time rate of pay
         in which such employee worked their last tour of duty prior to the general holiday,
         as provided for in Article 4.6.


h)   Modify Article 6.11 – Vacation With Pay:

     6.11 An employee who, due to sickness or injury, is unable to take or complete their
          annual vacation in that year shall, at the option of that employee, have the right
          to have such vacation carried to the following year. Under such circumstances,
          annual vacation shall be paid at the current year’s applicable rate of pay.

          No employee shall be forced to take annual vacation at the end of the work
          season, if they are still able to remain working. In this case they shall have the
          right to have such vacation carried over to the following year, however, annual
          vacation that is carried over must be taken in the carryover year and shall be
          paid at the previous year’s applicable rate of pay.


i)   Modify Article 6.12 – Vacation with Pay:

     6.12 An employee who is entitled to vacation shall take same at the time scheduled. If,
          however, it becomes necessary for the Company to reschedule an employee’s
          scheduled vacation dates, they shall be given at least fifteen (15) working days’
          advance notice of such rescheduling and will be paid at the rate of time and one-
          half their regular rate of wages for all work performed during the scheduled
          vacation period. The rescheduled vacation with pay to which they are entitled will
          be granted at a mutually agreed upon later date. Prior to rescheduling any
          vacation the Company will provide the employee and the Union with a
          reasonable explanation. This Article 6.12 does not apply where rescheduling is a
          result of an employee exercising their seniority to a position covered by another
          vacation schedule.


j)   Modify Article 7.1 – Deduction of Dues

     7.1 The Railway shall deduct on the payroll for the first pay period of each month
         from wages due and payable to each employee coming within scope of this
         Collective Agreement an amount equivalent to the uniform monthly union dues of
         the Teamsters Canada Rail Conference Maintenance of Way Employees
         Division, subject to the conditions and exceptions set forth hereunder.


k)   Modify Article 7.5 – Union Dues



                                        Page 10 of 45
     7.5 Deductions for new employees shall commence on the payroll on the first pay
         period of the month.



l)   Modify Article 7.6 – Union Dues

     7.6 If the wages of an employee payable on the payroll for the first pay period of any
         month are insufficient to permit the deduction of the full amount of dues, no such
         deduction shall be made from the wages of such employee by the Railway in
         such month. The Railway shall not, because the employee did not have sufficient
         wages payable on the designated payroll, carry forward and deduct from any
         subsequent wages the dues not deducted in an earlier month.


m)   Modify Article 8.1 c) – Work Week

     8.1c)      In addition to items a) and b) above, work schedules
                for employees working

                (i)     In Track Renewal and Equipment,

                (ii)    As Timekeepers pursuant to the Supplemental Agreement
                        governing Timekeepers in Maintenance of Way Service,

                (iii)   In work equipment repair service pursuant to the Supplemental
                        Agreement governing Employees in the Work Equipment Repair
                        Shops on the System in Connection with the Repair of Power
                        Operated Roadway Machines,

                (iv)    As members of Bridges & Structures crews working on Capital and
                        Special Maintenance Authority projects.

                (v)     As members of a Division Extra Gang Work Crew on Eastern
                        Region District #2 working on Capital or Special Maintenance
                        Authority projects, or while working in alignment with a track block
                        being utilized by a TR&E Seasonal Work Crew or a Bridge and
                        Structures Crew working on Special Maintenance Authority
                        projects.

                (vi)    As members working in Winter Crew (Snow Fighting) Service that
                        are covered by a Machine Operator’s Supplemental (Green Pages).

                (vii)   As a Flagman.

                may be established as follows:

                                        Page 11 of 45
                      Eighty (80) hours consisting of eight (8) days of 10 hours, with six
                       (6) consecutive rest days in each fourteen (14).

                      Eighty (80) hours consisting of seven (7) days of 11 hours and 25
                       minutes each, with seven (7) consecutive rest days in each
                       fourteen (14).

                 It is understood and agreed that, without exception, and notwithstanding
                 any other provision in this collective agreement, every crew that works
                 either an 8&6 schedule or a 7&7 schedule shall be deemed to be a
                 Special Work Crew for the purposes of, and shall fall within the scope of,
                 section 8.36 of this collective agreement.

                 Notwithstanding the above, when the work cycles of a crew change, the
                 employee will not suffer lost wages through the course of fulfilling the
                 requirements of eighty (80) regular hours for the pay period.

                 This Article shall not be construed to create a guarantee of any number of
                 hours or days of work not provided for elsewhere in this agreement. (See
                 Article 8.17)


n)   Modify Article 8.1 – Work Week, by adding a Note at the end.

     8.1 Note: Unless otherwise provided for in the collective agreement, the work week
               of all headquartered permanent positions cannot be changed without
               mutual agreement between the Director, Labour Relations and the
               President of the TCRC – MWED, or their designate. Mutual agreement
               will not be unreasonably withheld.


o)   8.2 Addition:

     No more than 30% of the regularly scheduled shift on the final day of a work cycle
     may be worked on the rest day following the end of the work cycle.

p)   Modify Article 8.3 – Work Week

     8.3         The Company and the Union agree to meet prior to the bulletining of the
                 gangs in order to finalize gang crew consists and work cycles. Such
                 meetings will be held no later than November 15 of the year preceding the
                 work season to be finalized. It is understood that should the meeting
                 occur prior to approval of the Capital Plan from the Board of Directors the
                 information exchanged at the meeting may be subject to change. These



                                       Page 12 of 45
                 changes will be promptly communicated to the Union and if the Union
                 requests a subsequent meeting, it will be held promptly.

                 Prior to the annual meeting, as per above, the Company will provide to the
                 Union a detailed list showing the locations on each subdivision that will be
                 used to store occupied Boarding Car Outfits for the work season. This
                 information will also contain the explanation for the storage of occupied
                 Boarding Car Outfits adjacent to main track at all locations where this is to
                 be practiced. Any plans for contracting out of TR&E work for the following
                 season will also be discussed. Such discussions will not relieve the
                 Company of its obligations under Articles 13.4.

                 In addition, the Company will schedule its occupied Boarding Outfit Car
                 storage locations with the attempt to eliminate or minimize storage
                 adjacent to main track and access for employees. The Company will
                 consider proximity to amenities where allowed by operational
                 requirements. If the Union requests additional information then this will be
                 supplied promptly, prior to the annual Article 8.3 meeting. If the Union has
                 concerns with any of the locations, every attempt shall be made to resolve
                 such at the 8.3 meeting. If resolution cannot be met, these issues may be
                 escalated to the Vice-President of Engineering Services. The Vice-
                 President of Engineering Services will have fifteen (15) calendar days to
                 respond to any issue so escalated. If the matter remains unresolved it may
                 be referred to arbitration, as mutually agreed between the parties.


q)   Modify Article 8.36.1 a) – Scope of Application

     8.36.1 a)   At the discretion of the Company, work schedules with rest days that are
                 not identified as the preferred rest days in Articles 8.1 (a), 8.1 (b) and 8.17
                 of the Collective Agreement, or that require employees to work a 7&7 or
                 8&6 schedule, may be implemented for:

                 (i)     Track Renewal and Equipment work crews, or,

                 (ii)    Employees working positions covered by the Supplement to
                         Wage Agreement No. 41, Covering Rates of Pay and Rules
                         governing working conditions of Timekeepers in Maintenance of
                         Way Service, or,

                 (iii)   Employees working positions covered by the Supplement to
                         Wage Agreement No. 41, Covering Rates of Pay and Rules
                         governing working conditions of employees in the Maintenance of
                         Way department, employed in Work Equipment Repair Shops on
                         the System in connection with the repair of power operated
                         Roadway Machines, or,

                                        Page 13 of 45
                  (iv)    Bridges & Structures Crews working on Capital and Special
                          Maintenance Authority projects.

                  (v)     A Division Extra Gang Work Crew on Eastern Region District 2
                          working on Maintenance Authority projects, or while working in
                          alignment with a track block being utilized by a TR&E Seasonal
                          Work Crew or a Bridge and Structures Crew working on Special
                          Maintenance Authority projects.

                 (vi)     As members working in Winter Crew (Snow Fighting) Service
                          that are covered by a Machine Operator’s Supplemental (Green
                          Pages).

                 (viii)   As a Flagman.


r) Modify Article 8.36.5 b), introductory paragraph – Schedule Transitioning

     8.36.5 b)   The following applies to an employee working a 5&2 or 4&3 work schedule
                 or an opposing 8&6 or 7&7 work schedule, transitioning into, or out of, a
                 Special Work Crew with a 8&6 or 7&7 work schedule:


s)        Modify Article 8.36.10

     Eastern region District #2 TR&E Crews

     a) All Eastern Region District #2 TR&E crews, whether in region service or not, shall
        work a 7&7 or 8&6 work schedule, unless otherwise agreed.

     b) Employees working in Winter Crew (Snow Fighting) Service that are covered by
        the Machine Operator’s Supplemental (Green Pages) on the Eastern Region
        District #2 shall work either a 7&7, 8&6 or 9&5 work schedule.

         Note: On the Parry Sound and Cartier Subdivisions a 5&2 or 4&3 work schedule
         may also be established. Should these work schedules conform to the preferred
         rest days provided for in Articles 8.1 a), 8.1 b) and 8.17 of the collective
         agreement, they shall not be considered as a Special Work Crew.


t) Modify Article 8.37.3 – Region Positions

     8.37.3      The number of Region positions that may be established shall be limited
                 as follows:



                                          Page 14 of 45
                  Pacific Region –       A total of 250 positions per work season, of which 75
                                         may be established in region tie crew service.

                  Note: For the Pacific Region only, the limits do not include positions
                        covered by the Supplement to Wage Agreement No. 41, Covering
                        Rates of Pay and Rules governing working conditions of employees
                        in the Maintenance of Way department, employed in Work
                        Equipment Repair Shops on the System in connection with the
                        repair of power operated Roadway Machines, that are established
                        to work with TR&E Region Crews and Timekeeper positions.

     Prairie Region – A total of 215 positions per work season.

     Eastern Region – A total of 200 positions per work season.

     Atlantic Region – A total of 120 positions per work season.

     Note: Should there be an operational need to expand the position limits in this
           subsection 8.37.3, the President of the Union and the respective General
           Manager shall meet to discuss the requirement. Subject to mutual agreement,
           the cap limits may be increased. Mutual agreement will not be unreasonably
           withheld.


u)          Modify Article 8.37.7 – Region Positions

     8.37.7       The system rest day travel policy shall apply to employees working Region
                  positions pursuant to item 8.37.1, subject to the following:

                 a) Employees holding Region positions shall receive a payment equal to
                    the meal allowance referred to in 12.9 f) for each leg of the rest day
                    travel provided the employee actually travels to and from the work
                    location. A maximum of two claims per work cycle shall be permitted;

                       Note: This payment is in addition to any other meal allowance or
                             travel assistance.

                  b)       Employees holding Region positions shall receive the mileage rate
                           set out in Article 12.10 for their rest day travel mileage allowance.


v)   Add a new Article 8.38 – Winter Crew (Snow Fighting) Service

     8.38         Winter Crew (Snow Fighting) Service

                  a)       Employees working in Winter Crew (Snow Fighting) service

                                          Page 15 of 45
                        may be assigned rest days that are:

                        i) Not identified as the preferred rest days listed in Article 8.1 a)
                           and b), or,

                        ii) Non-Consecutive rest days, without the need to establish relief
                            assignments.

                        iii) When i) and ii) above apply, these crews will be designated as
                             Special Work Crews in accordance with 8.36.1

                 b)     The starting time of a Winter Crew (Snow Fighting Crew)
                        position will not be between the hours of 01:00 and 04:00.

                 c)     Should there be insufficient work to keep employees working
                        in Winter Crew (Snow Fighting) service fully engaged, then such
                        employees may be assigned other Maintenance of Way work.


w)   Modify Article 9.5 – Seniority Lists

     9.5         Complete lists of all Maintenance of Way employees covered by this
                 agreement on each seniority territory as defined* hereunder, showing their
                 date entered Maintenance of Way service, permanent position (if
                 applicable), seniority standing in their respective departments and dates of
                 promotion to higher classifications therein, shall be updated and posted at
                 the headquarters locations of all employees concerned, on or before
                 March 31 and September 30 of each year. A copy of said list shall be
                 furnished to the Union Representatives of the employees. Seniority
                 territories, as defined* hereunder, shall not be changed except by
                 agreement between the railway involved and the TCRC MWED President.

                 Note: See Seniority Territories, Appendix B


x)   Modify first paragraph of Article 9.9 – Seniority Lists

     9.9         A seniority list shall be established for Track Maintainer/Section Truck
                 Driver. Bulletined vacancies of Track Maintainer/Section Truck Driver will
                 be awarded on the basis of seniority in the classification of Track
                 Maintainer/Section Truck Driver. A Track Maintainer/Section Truck Driver
                 will retain all seniority rights and shall be able to exercise all rights to
                 promotion as currently provided for in the Collective Agreement.
                 Displacement into the position of Track Maintainer/Section Truck Driver
                 will be on the basis of seniority in the classification of Track
                 Maintainer/Section Truck Driver. All current employees with Track

                                            Page 16 of 45
                 Maintainer Seniority will be grandfathered onto the Track
                 Maintainer/Section Truck Driver seniority list as agreed by the Company
                 and the Union.

                 All training regarding the Section Vehicle will be provided by the Company
                 during regular working hours. Upon award of a Track Maintainer/Section
                 Truck Driver position, employees will be provided training as soon as
                 reasonably possible, after which they shall have sixty (60) days to qualify.
                 The Company is prepared to absorb the cost of training, qualification
                 and any additional licensing fees regarding the operation of the Section
                 Vehicle.

     Refer to Letter of Understanding, not part of this MOS, for clarification on
     implementation of seniority lists.


y)   Modify Article 10.1, paragraph 4 – Vacancies and New Positions

     10.1        Bulletins shall remain open for application for twelve (12) days from the
                 Date of issuance.


z)   Modify Article 10.1 – Vacancies and New Positions, by adding a second Note

     Note:       Any bulletined position not cancelled prior to the end of the bulletin period
                 shall be awarded.


aa) Modify Article 10.12 – Vacancies and New Positions

     10.12       Any appeal against appointment must be made in the manner provided in
                 Article 15.7 within twenty-eight (28) calendar days from the date of issue
                 of bulletin covering such appointment.


bb) Modify Article 10.13 (a) – Vacancies and New Positions

     10.13 (a)   Except as otherwise provided below, temporary vacancies of less than
                 forty-five (45) calendar days required by the Company to be filled, in
                 positions subject to being bulletined in accordance with Article 10.1, shall
                 be filled by the senior qualified employee immediately available holding
                 seniority in that classification or group, and working in a lower paid
                 classification or group. Then in accordance with the line of promotion. If
                 there is a reason a senior employee is considered not immediately
                 available, this must be provided in writing to the TCRC MWED Director of
                 the applicable region. The provisions of Article 12.9 will apply.

                                        Page 17 of 45
cc) Modify Article 10.22 – Vacancies and New Positions

      10.22      Permanent and temporary supervisors are not active bargaining unit
                 members nor can they be represented by the Union while serving as a
                 supervisor but they may continue to accumulate seniority in accordance
                 with Article 10.21. The Company will provide timely notice, of temporary
                 and permanent appointments and reversions to the unionized ranks, to the
                 Secretary/Treasurer and the applicable TCRC – MWED Director.


dd) Add a Note to Article 10.24

      Note:   An employee will only be deemed as returning to the bargaining unit, if he
              works a classification specified within this agreement for no less than two full
              pay periods. This shall also apply to the employee’s ability to apply for
              bulletined positions under Article 10.1.


ee) Modify Article 11.11 – Staff Reduction and Recall

      11.11      Temporary positions or temporary vacancies of under forty-five (45) day
                 duration shall be filled by qualified laid-off employees living at or near the
                 work location, provided they are immediately available and provided the
                 provisions of Article 10.13 a) have been fulfilled. Laid-off employees shall
                 not be required to accept recall to vacancies of less than forty-five (45)
                 days when they have steady employment elsewhere.


ff)   Modify Section 12.9 – Expense Claims, as follows:

      12.9 a) Add Note

                 Should the bus rates in any given year decrease, the rate established in
                 the previous year will remain in effect.

      12.9 b) Direct Billed accommodation or a Per Diem in lieu:

                 Delete current second and third bullet points. Insert the following as the
                 second bullet point:

                        When direct billed accommodation is provided by the Company it
                         shall be single occupancy accommodation. The Company further

                                        Page 18 of 45
                  agrees that every employee may, in lieu of single occupancy
                  accommodation, and at his or her sole discretion, choose to receive
                  the Per Diem amount set out in section 12.9(b) of the Agreement
                  No. 41.

                  The Company shall, in a timely manner, make every good faith
                  effort to ensure that every employee who wants it is provided with
                  single occupancy accommodation.

                  In the event that, at any particular location, no reasonable way can
                  be found to provide every employee with single occupancy
                  accommodation, the Company and the Union Director shall discuss
                  the matter in an attempt to reach a mutually acceptable solution. If
                  no solution can be found, the overflow of employees shall be
                  placed into double occupancy accommodation in inverse seniority
                  order using their date of entry into Company service.

                  This shall apply notwithstanding any other provision of the
                  collective agreement.


12.9 b)     Increase the meal allowance from $40.25 to $41.60 and the per diem from
            $100 to $103, effective January 1, 2013. Increase the meal allowance
            from $41.60 to $43.00 and the per diem from $103 to $106.10, effective
            January 1, 2015.

12.9 c) -   Increase the meal allowance from $26.50 to $27.30, effective January 1,
            2013 and from $27.30 to 28.10, effective January 1, 2015.

12.9 d) -   Increase the ad hoc meal allowance from $40.25 to $41.60 and the per
            diem from $100 to $103, effective January 1, 2013. Increase the meal
            allowance from $41.60 to $43.00 and the per diem from $103 to $106.10,
            effective January 1, 2015.

12.9 e) -   Increase the subsequent monthly flat rate allowance from $760 to $790,
            effective January 1, 2013 and from $790 to $825, effective January 1,
            2015.

12.9 f) -   Increase the meal allowance from $40.25 to $41.60 and the per diem
            allowance from $100 to $103, effective January 1, 2013. Increase the
            meal allowance from $41.60 to $43.00 and the per diem from $103 to
            $106.10, effective January 1, 2015.

12.9 g) -   Increase the meal allowance from $21.20 to $21.85, effective January 1,
            2013 and from $21.85 to $22.50, effective January 1, 2015. Increase the



                                 Page 19 of 45
              mileage allowance from 35 cents to 37 cents per kilometer effective
              January 1, 2013.

12.9 h) 1 b) -       Increase the mileage allowance from 35 to 37 cents per kilometer
                     effective January 1, 2013.

12.9 h) 1 c) -       Increase the meal allowance from $21.20 to $21.85 effective
                     January 1, 2013 and from $21.85 to $22.50, effective January 1,
                     2015.

12.9 h) 2 a) -       Increase the meal allowance from $21.20 to $21.85, effective
                     January 1, 2013 and from $21.85 to $22.50, effective January 1,
                     2015. Increase the mileage allowance from 35 cents to 37 cents
                     effective January 1, 2013.

12.9 h) 3 a) -       Increase the mileage allowance from 35 to 37 cents effective
                     January 1, 2013.

12.9 h) 3 b) -       Increase the meal allowance from $21.20 to $21.85, effective
                     January 1, 2013 and from $21.85 to $22.50, effective January 1,
                     2015.

12.9 h) 4 a) -       Increase the mileage allowance from 35 to 37 cents effective
                     January 1, 2013.

12.9 h) 4 b) -       Increase the meal allowance from $21.20 to $21.85, effective
                     January 1, 2013 and from $21.85 to $22.50, effective January 1,
                     2015.

12.10 -              Increase the mileage allowance from 35 to 37 cents effective
                     January 1, 2013.

                     Modify Section 12.10 – Auto Allowance as follows:

                     Auto Allowance

                     12.10 When directed by the Company to use a personal
                           automobile, an automobile mileage allowance is paid in the
                           amount of thirty-five (35) cents per kilometer, effective
                           January 1, 2013, thirty-seven (37) cents per kilometer.


12.26 Laundry Allowance

          When an employee working on a Seasonal Work Crew is away from their
          place of residence for a period of three (3) nights (4&3 work schedule), or four

                                     Page 20 of 45
             (4) nights (5&2 work schedule), or more, and where laundry facilities are not
             provided by the Company, a laundry expense of $6.00 per work cycle may be
             claimed. (Effective January 1, 2014, this amount will be increased to $7.00)

             When an employee working on a Seasonal Work Crew is away from their
             place of residence for a period of seven (7) nights (8&6 work schedule), or six
             (6) nights (7&7 work schedule), or more, and where laundry facilities are not
             provided by the Company, a laundry expense of $12.00 per work cycle may be
             claimed, effective January 1, 2013. (Effective January 1, 2014, this amount will
             be increased to $14.00)

             Dry cleaning charges do not qualify for the laundry expense claim.


      12.27 Meal Allowance

             Employees that are not being provided with meal expenses or per diem
             expenses and are on duty in excess of three (3) hours beyond their regular
             quit time will be supplied with a meal or a $14.00 meal allowance in lieu
             thereof. Effective January 1, 2014, this amount will be increased to $15.00.

             The practice of continuing to provide meals to employees who return to
             Boarding Car Outfits under the aforementioned circumstances shall remain in
             effect.


gg) Modify Article 13.2 by adding a note.

      Note: Refer to Appendix 1 concerning the Company’s commitment to commence
            insourcing work.


hh) Modify Article 13.5 – Contracting Out

      13.5 The Company will advise the Union Representatives involved in writing, as far in
           advance as is practicable, of its intention to contract out work which may have a
           material and adverse effect on employees. Except in case of emergency, such
           notice will not be less than thirty (30) days.


ii)   Add a new Appendix 1 in Article 13, following Article 13.9

      Appendix 1

      This has reference to the Company’s commitment to commence insourcing work that
      was traditionally performed by members of the bargaining unit. Such work shall

                                        Page 21 of 45
      include, but not be limited to, snow removal, brush work, track protection, track repair,
      track maintenance and track construction, and the construction, repair and
      maintenance of bridges and structures.

      The parties recognize that in order for the Company to fulfill its commitment, issues of
      hiring, training and the acquisition of equipment will have to be addressed.

      The parties also appreciate that matters of cost and efficiency are criteria which form
      considerations to the implementation of the insourcing, described above.

      The parties recognize that dealing with these issues will take some time. With that in
      mind, the Company agrees to address this issue on an ongoing basis and have all
      relevant matters settled and implemented by the end of the term of the present
      contract.

      Nothing in this Appendix 1 shall limit or interfere with the Union’s ability to exercise its
      rights under Article 13.9 of the present collective agreement.

      The President of the Union and the Senior Vice President, Operations will meet
      monthly to discuss the progress of the insourcing.


jj)   Add a Note to Article 15.1 – Investigations, Grievances and Final Dispute Resolution

      Note:    When an employee is held out of service solely pending the results of
               substance testing following an incident and whose results are negative, they
               will be compensated for all lost wages including any overtime and/or
               premiums.


kk) Modify Article 15.6 – Investigations, Grievances and Final Dispute Resolution

      15.6        Grievances concerning dismissals and the assessment of 30 demerits or
                  more will be initiated at Step 2 of the grievance procedure. Vacancies
                  created by dismissals will not be bulletined as permanent during the
                  appeal period (maximum of two (2) years). This practice will not be used
                  by the Union during the grievance process or at arbitration to argue that
                  dismissals are other than permanent.

                  Note: Generally speaking, the parties agree to be guided by the principle
                        that the return of an employee to the service of the Company, who
                        has been dismissed or demoted for cause, should not be permitted
                        to displace other employees.

                          (See Appendix F-13)



                                          Page 22 of 45
ll)   Section 16 – Health & Safety

      Add the following letter to Section 16:

      Reporting of FRA reportable injuries and/or fatalities to Union Representatives.

      December 8, 2012

      Mr. W. Brehl
      President
      Teamsters Canada Rail Conference
      Maintenance of Way Employees Division
      Suite 2 - 2775 Lancaster Rd.
      Ottawa, Ontario
      K1B 4V8

      Dear Mr. Brehl:

      During negotiations the Union expressed concerns regarding the prompt reporting of
      FRA reportable injuries and/or fatalities to Union Representatives.

      The company agrees that FRA reportable injuries shall be reported to the TCRC
      MWED Regional Director on the region of the occurrence within 8 hours of the
      supervisor in charge being made aware of the occurrence.

      Advice may be made electronically or by telephone. In the event of a fatality or
      serious injury which may result in permanent disability such notification will take place
      as soon as possible.

      Yours truly,



      Guido Deciccio
      Senior Vice President
      Canadian Operations




                                         Page 23 of 45
mm) Eliminate four (4) TCRC MWED Health and Safety Representative positions
    Delete TCRC MWED Health and Safety Representative in Article 2.3
    Delete Article 16.8

nn) Modify Article 18.3 c) – Return to Work

     18.3 c)     A disabled employee placed on a position shall not be displaced by an
                 able-bodied employee so long as they remain in that position except when
                 a senior employee is otherwise unable to hold a position of equal rate or
                 higher through the exercise of their seniority.


oo) Add Letter of Understanding, Travel Assistance for Atlantic Province TR&E employees
    The terms of this travel assistance are contained in Appendix F of this MOS.


pp) Modify Appendix B of the Collective Agreement – Seniority Territories
    A Letter concerning the modifications to seniority territories is contained in Appendix G
    of this MOS.


qq) Add a letter to the Collective Agreement – Company & Union Communications

     December 8, 2012

     Mr. Peter Edwards
     Vice President, Human Resources & Industrial Relations
     Suite 500, Gulf Canada Square
     401 – 9th Avenue S.W.
     Calgary, Alberta
     T2P 4Z4

     Dear Mr. Edwards:

     As the membership of the TCRC MWED are as a rule, long service employees and
     have invested most of their working lives towards the betterment of Canadian Pacific,
     we believe our involvement is key to the future performance of the railroad.

     We also believe that any involvement with us must first start with proper, open and
     honest communication.


                                       Page 24 of 45
Therefore in the interests of better labour relations, as well as with the intent of
assisting the company in its efforts for safe, competent and productive performance,
the presidents of both the company and the union agree to meet at least once per
year to discuss issues of common concern.

These meetings may also be attended by senior officers.

Dates and times for these meetings will be jointly agreed by the parties.
The meeting location will be in Calgary, at the headquarters of the Company, unless
otherwise advised by the President and CEO of Canadian Pacific.

If all of the above accurately reflects your understanding, please indicate same by
signing below.

Yours truly,


__________________________
Bill Brehl
President
Teamsters Canada Rail Conference
Maintenance of Way Employees Division

I concur,

___________________________
Peter Edwards
Vice President, Human Resource & Industrial Relations
Canadian Pacific




                                  Page 25 of 45
8. GENERAL

  The foregoing changes, together with all recently concluded agreements dealing with
  individual Union demands are in full settlement of all requests eligible to have been served
  by and upon the Company and the Unions signatory hereto, subsequent to June 30, 2012.
  Employees must be in active service on the date of ratification in order to receive the
  entitlements contained in this agreement.

  Effective the date of ratification, employees that have resigned, been dismissed from
  service, had their employment file closed or otherwise terminated their employment
  relationship, will not receive the entitlements contained in this agreement.

  An employee subsequently reinstated to serve will, upon reinstatement, be entitled to the
  benefits contained in this agreement.

  It is understood that this Memorandum of Settlement is subject to ratification by the
  employees in the bargaining unit and shall constitute a binding collective agreement only
  when written notice of such ratification is communicated to the Company. Should this
  Memorandum of Settlement fail to ratify, the Company reserves the right to add to, revise,
  modify, substitute, amend or withdraw any of the initial negotiating issues, or introduce new
  issues for discussion.

  Where no implementation dates are indicated, the implementation date shall be the first of
  the month following ratification.

  The parties have put sufficient detail in this Memorandum of Settlement so as to eliminate
  the requirement or need to execute a Memorandum of Agreement. Accordingly, as soon
  as possible after the ratification of the Memorandum of Settlement, the parties will meet to
  complete a re-write, translation and printing of the Collective Agreement in conformity with
  the foregoing changes




                                          Page 26 of 45
9. Duration

    This Agreement (including all Supplemental Agreements) shall remain in effect until
    December 31, 2017.

    SIGNED AT Calgary, Alberta, December 8, 2012

    For Canadian Pacific:                     For TCRC-MWED:


    ________________________                  _________________________
    Peter Edwards                             W. Brehl
    VP, HR/IR                                 President

    ________________________                  _________________________
    Guido Deciccio                            Gary Doherty
    Senior VP, Operations                     Director, Prairie Region


    ________________________                  _________________________
    Brent Laing                               Anthony Dellaporta
    VP, Engineering                           Director, Atlantic Region


    ________________________                  _________________________
    Matt Foot                                 Wade Phillips
    GM, Capital Planning & Projects           Local Chairman, Lodge 211


    ______________________                    _________________________
    Brent Szafron                             Rob Marshall
    GM, Engineering                           TCRC – MWED Committee Member

    ______________________                    _________________________
    Scott Seeney                              Trevor Marshall
    Director, Labour Relations                TCRC – MWED Committee Member


    ______________________                    ______________________
    Mike Moran                                David Brown
    Manager, Labour Relations                 Counsel




                                         Page 27 of 45
    ______________________
    Maggie Chernenkoff
    Labour Relations Officer
Appendix A of this MOS – General Wage Increases

December 8, 2012

Mr. W. Brehl
President
Teamsters Canada Rail Conference
Maintenance of Way Employees Division
Suite 2 - 2775 Lancaster Rd.
Ottawa, Ontario
K1B 4V8

Dear Mr. Brehl,

In recognition of your early signing prior to the expiry of the contract, the Company will institute
the 3% general wage increase scheduled for 2013 early. Subject to a successful ratification, it
will become effective upon the signing of this agreement, instead of on January 1, 2013.

Further, in recognition of the five year duration of this contract, the Company agrees to add a
1% general wage increase in 2016 and 2017, in addition to the pattern wage increases
outlined in Item 2. In total, the general wage increases effective January 1, 2016 and January
1, 2017 will be 3%.

I trust this reflects our discussion accurately.


Yours truly,


Peter Edwards
Vice President, Human Resources and Industrial Relations
Canadian Pacific




                                              Page 28 of 45
Appendix B of this MOS

Canadian Pacific Pension Plan Reform

Side Letter- This letter shall not form part of the Collective Agreement

December 8, 2012

Mr. W. Brehl
President
Teamsters Canada Rail Conference
Maintenance of Way Employees Division
Suite 2 - 2775 Lancaster Rd.
Ottawa, Ontario
K1B 4V8

Dear Mr. Brehl,

This has reference to our discussions about changes to the design of the Canadian Pacific
Pension Plan during negotiations. The changes will be presented to the Pension Committee.
The union and management representatives on the Pension Committee shall vote to approve
and enact the changes detailed by this agreement at the earliest possible meeting.

   I. General

       Amendments to the Canadian Pacific Railway Company Pension Plan (the “Plan”) will
       take effect December 31, 2012 (the “Effective Date”).

       The Plan changes will apply:

          i. to all members of the Plan represented by the Teamsters Canada rail Conference
             Maintenance of Way Employees Division (“TCRC MWED Members”) at the
             effective date of the new collective agreement, and will apply to all of each such
             person’s past service regardless of what union or non-union positions they worked
             in for any portion of their past service; and

          ii. to all employees who are hired by the Company subsequent to the effective date
              of the new collective agreement and become TCRC MWED Members upon
              being hired; and


         iii. if an individual becomes a TCRC MWED Member subsequent to the effective
              date of the new collective agreement, to all of his or her past service prior to the

                                            Page 29 of 45
          date he or she becomes an TCRC MWED Member, subject to the provisions
          below.

  Effective January 1, 2013, the definition of “Earnings” in the Plan applicable to TCRC
  MWED Members will be amended to include salary or wages of the TCRC MWED
  Member including Deemed Earnings (as defined in the Plan), and will specifically
  exclude any incentive pay that might be payable on or after that date.

  An TCRC MWED Member’s Highest Plan Earnings (as defined in the Plan) will continue
  to include incentive pay payable up to December 31, 2012 in the calculation of pension
  benefits in respect of Pensionable Service up to December 31, 2012.


II. Existing Employees – Hired on or prior to the Effective date

             A new fixed dollar “Pension Limit” applicable to TCRC MWED Members will
              be introduced in the Plan equal to $1,975 per year of Pensionable Service.
              There will be no future escalation to this new fixed dollar “Pension Limits”,
              unless otherwise changed by some mechanism such as a Pension Plan
              Improvement Account concept. The Pension Limit will apply as follows:

   a) Past Service

      Except as described in b) below, the new Pension Limit will apply to fix the maximum
      annual pension payable, prior to any reduction that might apply for early retirement
      or for an optional form of payment, for all years of Pensionable Service on or before
      the Effective Date.


   b) Grandfathering

      For any TCRC MWED Member whose Highest Plan Earnings at the Effective Date
      produces an accrued benefit at that date in excess of the new Pension Limit, the
      Pension Limit for that individual will be based on his or her Highest Plan Earnings at
      the Effective Date and the Average Year’s Maximum Pensionable Earnings (as
      defined in the Plan) at the Effective Date, for all Pensionable Service on or before
      the Effective Date, subject to the “defined benefit limit” in the Income Tax
      Regulations (Canada).


   c) Future Service

      The new Pension Limit will apply to fix the maximum pension payable, prior to any
      reduction that might apply for early retirement or for an optional form of payment, for
      all years of Pensionable Service following the Effective Date (or, where applicable,
      the transfer date).

                                        Page 30 of 45
      The benefit accrual rate and the employee contribution rates, each as set out in the
       Plan rules, will remain unchanged.
III. New Hires –Hired after the Effective Date

   The provisions of the Pension Plan will be modified as follows in respect of TCRC
   MWED Members who most recent date of hire with the Company is after the Effective
   Date:

        A new fixed dollar “Pension Limit” applicable to TCRC MWED Members will be
         introduced in the Plan equal to $1,715.00 per year of Pensionable Service. There
         will be no future escalation to this new fixed dollar “Pension Limit”, unless otherwise
         changed by some mechanism such as a Pension Plan Improvement Account
         concept. The new Pension Limit will apply to the maximum pension payable, prior to
         any reduction that might apply for early retirement or for an optional form of
         payment, for all years of Pensionable Service following the Effective Date (or, where
         applicable, the transfer date).

        The benefit accrual rate for the portion of the Highest Plan Earnings up to the
         Average Year’s maximum Pensionable Earnings at the Date of Cessation of
         Membership (as defined in the Plan) will be 1.7%

        Employee contributions shall be at the rates of 4.3% on Earnings up to the Year’s
         Maximum Pensionable Earnings and 6.3% on Earnings in excess of the Year’s
         Maximum Pensionable Earnings.


IV. Transfers from another Union or from Management

   If an individual becomes an TCRC MWED represented employee subsequent to the
   effective date of the new collective agreement, such Member’s pension benefits in
   respect of Pensionable Service prior to the date of becoming a TCRC MWED
   represented employee (the Member’s “transfer date”) shall be determined as the lesser
   of:


   i)       the pension determined at the Member’s Date of Cessation of Membership (as
            defined in the pension plan) in accordance with the plan provisions applicable to
            the Member’s previous union or non-union affiliation, and

   ii)      the Member’s Pensionable Service accrued prior to the Member’s transfer date
            multiplied by the new applicable Pension Limit, which is based on date of hire
            with Company.

   Notwithstanding the above, such individual’s pension benefits in respect of Pensionable
   Service prior to the transfer date shall not be less than his or her accrued pension

                                          Page 31 of 45
       benefits based on the individual’s Highest Plan Earnings and Average Year’s maximum
       Pensionable Earnings at the transfer date and applying the pension plan provisions
       applicable to the Member’s previous union or non-union affiliation.
       Employee contribution rate and benefits accrual rates will apply based on such TCRC
       MWED Member’s most recent date of hire with the Company, as described above.


   V. Illustration of Pension Limit

       The following illustrations are provided to help clarify how the new Pension Limit would
       apply to an TCRC MWED Member at retirement. As the illustrations show, there is no
       impact to an TCRC MWED Member unless their 5 year average Highest Plan Earnings
       are in excess of $104,000.00.

       For the illustration, consider a TCRC MWED Member who is age 50 and has 30 years
       of Pensionable Service when the new Pension Limit comes into effect on December 31,
       2012. Further, assume that the employee retires with the Company consent in 5 years
       at age 55 years with 35 years of Pensionable Service. Since the impact depends on the
       level of earnings, the illustration shows a range of 5-year Average Highest Plan
       Earnings from $55,000.00 to $105,000.00.

Retirement on December 31, 2017 – age 55 with 35 years Pensionable Service
Pension Limit is $69,125 ($1,975 x 35 years)

5-year Average          Annual Pension         Annual Pension          Impact of New
Highest Plan            Based on Current       Based on New            Pension Limit
Earnings                Plan Rules             Pension Limit
$55,000                 $34,650                $34,650                 None
$65,000                 $41,650                $41,650                 None
$75,000                 $48,650                $48,650                 None
$85,000                 $55,650                $55,650                 None
$95,000                 $62,650                $62,650                 None
$104,000                $68,950                $68,950                 None
$105,000                $69,650                $69,125                 $525 less
                                                                       pension
$115,000                $76,650                $69,602*                $7,048 less
                                                                       pension
Assumptions: Current 5-year Average Year’s Maximum Pensionable Earning (YMPE) of $50,000.
Earnings and YMPE increase 10% over next 5 years.


* At this earnings level, the grandfathering rules apply to provide a pension above the $69,125
pension limit (see Section II (b) of this letter)

As the illustration shows, there is no impact to a TCRC MWED Member unless their 5-year
average Highest Plan Earnings are in excess of $104,000.00.


                                                 Page 32 of 45
It is understood that changes to the Canadian Pacific Pension Plan do not form part of the
Collective Agreement and are subject to the approval of the Pension Committee and the Board
of Directors.


Yours truly,



Scott Seeney
Director, Labour Relations


I concur,


____________________
Mr. W. Brehl
President
Teamsters Canada Rail Conference
Maintenance of Way Employees Division




                                        Page 33 of 45
Appendix C – Pension Plan Improvement Account Concept

Side Letter- This letter shall not form part of the Collective Agreement

December 8, 2012

Mr. W. Brehl
President
Teamsters Canada Rail Conference
Maintenance of Way Employees Division
Suite 2 - 2775 Lancaster Rd.
Ottawa, Ontario
K1B 4V8

Dear Mr. Brehl

This has reference to our discussions about changes to the design of the Canadian Pacific
Pension Plan during negotiations, specifically the establishment of changes outlined in
Appendix B of this MOS.

The Union expressed a concern pertaining to the opportunity to negotiate further
improvements to the Pension Plan provisions should the financial performance and solvency
position of the plan improve.

The parties agreed that during the closed period of the contract, meetings would take place to
explore the creation of a union-management pension improvement committee. This would
move pensions away from the bargaining table and would allow decisions to be made based
on the financial health of the Plan. Specifically, once the Plan reaches a target solvency
position, net of prepayments that CP has made to the plan, the parties will establish a "Pension
Improvement Account" and the Committee will decide on appropriate future changes to the
Plan which can be funded by this Account.

It is understood that and any such changes would be subject to the approval of the appropriate
pension committee(s) and the Board of Directors.


Yours truly,


Peter Edwards
Vice President, Human Resources and Industrial Relations




                                            Page 34 of 45
APPENDIX D of this MOS
COST NEUTRAL DRUG CARD
December 8, 2012

Mr. W. Brehl
President
Teamsters Canada Rail Conference
Maintenance of Way Employees Division
Suite 2 - 2775 Lancaster Rd.
Ottawa, Ontario
K1B 4V8

Dear Mr. Brehl

This refers to our recent discussions regarding a cost neutral drug card.

Canadian Pacific is prepared to renew the drug card to your members subject to the following
conditions, which were previously in effect:

   1) The drug card will be subject to the same dispensing fee cap that is applied to the
      management “mid-line” plan. This is currently set at 80% of the dispensing fee charged
      to a maximum of $7.50 per prescription and is reviewed on a regular basis against
      competitive practice.

   2) In order to obtain a drug card employees will be required to positively enroll their
      dependants and provide data about any other drug plan they have access to (e.g.
      spousal benefit plan) in order to enable the coordination of benefits.

   3) Implementation of a 25% cap for all employees on allowable pharmacy “markup” on all
      drug categories as compared to the current 50% allowable markup for generics and
      single-source brand name drugs and the current 15% allowable markup for brand name
      drugs where a generic exists. This change will match the markup limits in the
      management plan. Markup is what the plan allows the drug store to charge over and
      above what provincial drug boards set as the reasonable and customary charges per
      Drug Identification Number (DIN). The 25% cap is consistent with the management
      plan.

   4) Furthermore, the following serves to clarify the definition of a "spouse" with respect to
      Extended Health, Vision Care and Dental benefits:

      A spouse is the person who is legally married to you and who is residing with or
      supported by you. Provided that there is no legally married "spouse" that is eligible, it is
      the person that qualifies as a "spouse" under the definition of that word in Section 2(1)

                                           Page 35 of 45
       of the Canadian Human Rights Benefit Regulations, so long as such person who may
       be of the same or opposite sex was publicly represented by you as your "spouse" and
       cohabited with you in a conjugal relationship for:

       - At least one (1) year if you and that person were free to marry, or,

       - At least three (3) years if either of you was not free to marry the other.

       In the case of separation of more than three months, or divorce, he/she is no longer
       eligible for coverage.

   5) Employees who have an ongoing prescription will be governed by mandatory mail order
      pharmacy service for long-term maintenance drugs. The Company is currently in the
      process of implementing this service which will provide convenience, cost savings and
      quality service to all users.

Although employees will not be forced to get a drug card, please note that the same
adjudication practices described above will apply for drug claims reimbursed by submitting
paper-based claims.

In the event of any specific concern associated with this letter the President of the Union and
the AVP of Industrial Relations will meet to discuss the case.

Cards issued will continue to be in effect until December 31, 2017. Should the Company incur
additional costs beyond 10% during the usage period then the Company retains the right to
cancel the cards or to renegotiate the drug card particulars with the Union.

Should the Union wish to cancel the card, cancellation may be initiated by the Senior General
Chairman by providing no greater than 3 month notification in writing to the Assistant Vice
President of Industrial Relations. Such notice may not be advanced prior to October 1, 2015.

It is understood that this Appendix D is subject to a ratification process that is separate and
apart from that of the remaining MOS. If you concur with all of the above, please indicate same
by signing below.

Yours truly,


Scott Seeney
Director, Labour Relations

I concur,

_____________________________
Mr. W. Brehl
President

                                            Page 36 of 45
Teamsters Canada Rail Conference
Maintenance of Way Employees Division

APPENDIX E of this MOS

Appendix M of the JSA

                        Letter concerning the diversion of 1% per annum
                         of the Company’s contribution to the ES Fund

December 8, 2012

Mr. W. Brehl
President
Teamsters Canada Rail Conference
Maintenance of Way Employees Division
Suite 2 - 2775 Lancaster Rd.
Ottawa, Ontario
K1B 4V8

Dear Mr. Brehl:

In exploring options that would satisfy both parties concerns, we evaluated the possibility of
diverting all or part of the existing Company contribution (1%) to the ES fund.

As such and upon ratification, 1% of the existing Company contribution to the ES Fund will be
handled as follows;

    - The 1% contribution covering the period from January 1, 2013 to December 31, 2013
      will be converted to a lump sum payment equal to 1% of gross payroll earnings and paid
      to each employee based on their individual earnings. This will be paid in February of
      2014.
    - The 1% contribution covering the period from January 1, 2014 to December 31, 2014
      will be converted to a lump sum payment equal to 1% of gross payroll earnings and paid
      to each employee based on their individual earnings. This will be paid in February of
      2015.
    - The 1% contribution covering the period from January 1, 2015 to December 31, 2015
      will be converted to a lump sum payment equal to 1% of gross payroll earnings and paid
      to each employee based on their individual earnings. This will be paid in February of
      2016.
    - The 1% contribution covering the period from January 1, 2016 to December 31, 2016
      will be converted to a lump sum payment equal to 1% of gross payroll earnings and paid
      to each employee based on their individual earnings. This will be paid in February of
      2017.
    - The 1% contribution covering the period from January 1, 2017 to December 31, 2017
      will be converted to a lump sum payment equal to 1% of gross payroll earnings and paid

                                           Page 37 of 45
       to each employee based on their individual earnings. This will be paid in February of
       2018.

The lump sum payments will be processed as a separate cheque from normal earnings.

The aforementioned process shall remain in effect for the duration of the contract, at which
time it will revert to the former contribution arrangement (1% of gross monthly payroll for
employees represented by the TCRC MWED employed by Canadian Pacific in Canada).

It is understood that the Company will not incur additional liability as a result of this change
should the fund cease to have sufficient funds to cover its obligations.

The 1% diversion payments shall be considered as pensionable earnings.



Yours truly,


Scott Seeney
Director, Labour Relations




                                             Page 38 of 45
Appendix F of this MOS – This letter shall form part of the Collective Agreement
___________________________________________________________________________
Updated Travel Assistance for Atlantic Province TR&E employees

December 8, 2010

Mr. W. Brehl
President
Teamsters Canada Rail Conference
Maintenance of Way Employees Division
Suite 2 - 2775 Lancaster Rd.
Ottawa, Ontario
K1B 4V8

Dear Mr. Brehl:

During negotiations the Union expressed concerns regarding the financial hardship
experienced by employees that travel from the Atlantic Provinces to work on Seasonal TR&E
work crews.

In addressing this concern, effective January 1, 2008, the Company shall provide
compensation for one round air fare trip, in economy class, to assist these employees with
“deployment” and “return home” expenses.

Reimbursement shall be administered through expense account submission and air fare will be
reimbursed as the “lowest fare available” rate, regardless of the actual fare paid.

In the event that an employee resigns or is dismissed, the Company will make arrangement to
recover the costs of the return airfare. In all other circumstances where an employee does not
work a full work season, the Company and the Union will meet to discuss reimbursement
arrangements.

In lieu of reimbursement for air fare ticket(s) that are purchased, employees may elect a lump
sum cash equivalent payment.

Reimbursement for air fare tickets, or lump sum cash equivalent payments, will be processed
in accordance with Revenue Canada tax requirements and regulations concerning taxable
benefits, which may have tax deduction implications.

Yours truly,



Scott Seeney
Director, Labour Relations

                                          Page 39 of 45
Appendix G
______________________________________________________________________
Letter of Understanding Concerning Appendix B of the Collective Agreement
Seniority Territories

December 8, 2012

Mr. W. Brehl
President
Teamsters Canada Rail Conference
Maintenance of Way Employees Division
Suite 2 - 2775 Lancaster Rd.
Ottawa, Ontario
K1B 4V8

Dear Mr. Brehl:

During negotiations the Company expressed a desire to update the Seniority Territories
listed in Appendix B of the Collective Agreement so that they accurately reflect
Canadian Pacific’s current rail network.

The Union expressed concerns that territories should not be eliminated should
Canadian Pacific cease operations, yet retained ownership of the territory, such that it
could be reestablished in the future.

In this regard, the parties agreed to meet within 90 days of ratification to update the list
of Seniority Territories, giving due consideration to these concerns, subject to mutual
agreement.


Yours truly,


Scott Seeney
Director, Labour Relations


I concur:



_____________________
Mr. W. Brehl
President
Teamsters Canada Rail Conference
Maintenance of Way Employees Division


                                                    Page 40 of 45
Side letter
(Not included in Collective Agreement)

Letter of Understanding concerning the implementation of changes to Article 9.9

December 7, 2012

Mr. W. Brehl
President
Teamsters Canada Rail Conference
Maintenance of Way Employees Division
Suite 2 - 2775 Lancaster Rd.
Ottawa, Ontario
K1B 4V8

Dear Mr. Brehl:

This is in regards to Article 9.9 of the Collective Agreement and the grandfathering of
employees from the Track Maintainer (TM) Seniority List into the newly established
Track Maintainer/Section Truck Driver (TM/TD) Seniority List.

In order to provide further clarity, employees on TM Seniority Lists on the date of
ratification, will be added to newly established TM/TD Seniority Lists with the following
exceptions:

1.     Employees on TM Seniority Lists that have been previously provided training in
       accordance with Article 14 of the collective agreement and have not been able to
       qualify will not be added to the new TM/TD Seniority List.

2.     Employees on the TM Seniority List that are permanently restricted from the
       position of TM/TD will not be added to the new TM/TD List

Employees on the TM/TD Seniority List will not be provided training until they receive a
TM/TD position by bid.

The Director, Labour Relations and the President, TCRC MWED or their designates, will
meet and/or discuss any issues arising out of the application of this letter of
understanding.

Yours truly,                                     I Concur:


                                                 _____________________
Mike Moran                                       Bill Brehl
Manager, Labour Relations                        President TCRC MWED
Side letter


                                                   Page 41 of 45
Side Letter
(Not part of the Collective Agreement)

Safety Footwear and Safety Clothing Subsidy

December 8, 2012

Mr. W. Brehl
President
Teamsters Canada Rail Conference
Maintenance of Way Employees Division
Suite 2 - 2775 Lancaster Rd.
Ottawa, Ontario
K1B 4V8

Dear Mr. Brehl,

The Company and the Union agree to change the safety footwear and clothing subsidy
as follows:

    • Effective January 1, 2013, increase the safety footwear subsidy from $60.00 to
      $65.00/twice per year. Effective January 1, 2016, increase the safety footwear
      subsidy from $65.00 to $70.00/twice per year.

    • Effective January 1, 2013, change the “Alternate High Visibility Apparel
      Employee Purchase Program” as it applies to employees represented by the
      Teamsters Canada Rail Conference Maintenance of Way Employees Division by
      increasing the existing subsidy from $50.00 to $60.00. It is understood that this
      increase will either apply to two subsidies per year, or alternatively, they can be
      combined and applied once per year, as stipulated in the policy. Employees will
      be required to submit receipts in order to receive reimbursement.

Yours truly,



Scott Seeney
Director, Labour Relations




                                                  Page 42 of 45
Side Letter of Understanding
(Not part of the Collective Agreement)

Transcona Lunch Pilot Project

December 8, 2012

Mr. W. Brehl
President
Teamsters Canada Rail Conference
Maintenance of Way Employees Division
Suite 2 - 2775 Lancaster Rd.
Ottawa, Ontario
K1B 4V8

Dear Mr. Brehl

This shall serve to confirm that upon the reintegration of the Transcona Rail Butt
Welding facility into Canadian Pacific, but in no case no later than January 1,
2014, a 20 minute paid lunch will be implemented.

The 20 minute paid lunch will be implemented on a pilot test basis for a period of
6 months and will remain in effect beyond that period on the condition that daily
weld production levels are maintained at a level equal to that prior to the pilot
test.

In this regard, the President of the Union and the Vice President of Operations
shall review the weld productivity on a monthly basis.

I trust this reflects our discussion accurately.


Yours truly,


Guido Deciccio
Senior Vice President, Canadian Operations
Canadian Pacific




                                              Page 43 of 45
Side Letter
(Part of the Collective Agreement)

Training

December 8, 2012


Mr. W. Brehl
President
Teamsters Canada Rail Conference
Maintenance of Way Employees Division
Suite 2 - 2775 Lancaster Rd.
Ottawa, Ontario
K1B 4V8

Dear Mr. Brehl,

The Company agrees to apply the following principles regarding training

•      Training for D Card qualification must be offered to all employees, to
       attend the next available training class, within thirty (30) days of them
       attaining the required service according to current company policy.

•      The Company will provide the opportunity for training, to attend the next
       available training class, within six (6) months of an employee occupying a
       bulletined position, which requires that training.

This above applies to all positions that require training for classifications within
Wage Agreement 41/42 and supplemental agreements.


Yours truly,


Brent Laing
Vice President, Engineering
Canadian Pacific




                                             Page 44 of 45
December 8, 2012

Mr. W. Brehl
President
Teamsters Canada Rail Conference
Maintenance of Way Employees Division
Suite 2 - 2775 Lancaster Rd.
Ottawa, Ontario
K1B 4V8


Dear Mr. Brehl:

The Company has indicated to the Union that, subject to a successful ratification
of the
December 8, 2012 Memorandum of Settlement, it intends to restore the
Company contribution element of the employee share purchase plan for the
Teamster Rail Canada Conference Maintenance of Way Employees Division
effective the first full pay period in January 2013.

This is not a negotiated item and does not form part of the Collective Agreement.

Yours Truly,



Peter Edwards
Vice President, Human Resources and Industrial Relations




                                          Page 45 of 45

				
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