OTTAWA — A Federal Court of Appeal judge has acquitted Canadian Pacific Kansas City Ltd. of contempt of court related to excessively long hours worked by employees.

The ruling from Justice Donald Rennie sets aside a lower court decision, stating it is “impossible to rationalize a finding of contempt with the facts” given CPKC took “meaningful steps” toward compliance.

The judgment overrides a Federal Court’s contempt-of-court ruling from last year that found the company failed in 22 instances in 2018 and 2019 to comply with cease-and-desist orders laid out by an arbitrator.

The orders related to rest provisions under federal regulations and a pair of collective agreements for conductors and engineers that largely limit shifts to 10 or 12 hours, depending on the circumstances.

Canadian Pacific says in a statement it is pleased with the acquittal.

The Teamsters union, which represents thousands of CPKC workers, calls the decision “very disappointing” and claims the company “routinely” violates collective agreements.

This report by The Canadian Press was first published Aug. 28, 2024.

Companies in this story: (TSX:CP)

The Canadian Press