Canadian Pacific comments on decision of federal labour arbitrator

      Canadian Pacific comments on decision of federal labour arbitrator

PR Newswire

CALGARY, Dec. 19, 2012

CP also announces ratification of IBEW agreement

CALGARY, Dec. 19, 2012 /PRNewswire/ - Canadian Pacific (TSX:CP)(NYSE:CP) said
today it is pleased the collective bargaining process with the Teamsters
Canada Rail Conference, on behalf of Running Trade Employees, and Rail Traffic
Controllers has finally concluded and an agreement is now in place.

CP has received the award of federally-appointed arbitrator, William Kaplan.

The award contains, among other changes a cap on pension growth and a new
pension accrual rate for future hires. The deal is three years in length and
is retroactive to January 2012.

"Mr. Kaplan had an extremely difficult job. He was thoughtful and sought at
all times to close the gap between the parties. CP is appreciative of his
efforts," said Peter Edwards, vice president of Human Resources.

IBEW Ratification

CP is also pleased to announce the five-year agreement reached with the
International Brotherhood of Electrical Workers on November 15, 2012 has been
ratified with 94% acceptance.

This contract begins January 1, 2013.

"I am pleased we were able to reach another agreement with a key union and we
are looking forward to working with the IBEW," said E. Hunter Harrison,
president and CE0. "With our labour situation settled, CP is in very good
position to continue the work of being an even more reliable and efficient
railway for our customers."

About Canadian Pacific

Canadian Pacific (TSX:CP)(NYSE:CP) is a transcontinental railway in Canada and
the United States with direct links to eight major ports, including Vancouver
and Montreal, providing North American customers a competitive rail service
with access to key markets in every corner of the globe. CP is a low-cost
provider that is growing with its customers, offering a suite of freight
transportation services, logistics solutions and supply chain expertise. Visit
cpr.ca to see the rail advantages of Canadian Pacific.

SOURCE Canadian Pacific

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