Canadian Pacific comments on decision of federal labour arbitrator

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