Labor deal averts strike at CN Railway

Winnipeg-Canadian National Railway Co. (CN) on Jan. 24 reached a tentative contract agreement with the Canadian Auto Workers Union (CAW), averting a strike action that CAW had set for Jan. 25 at 12:01 a.m. (GM Jan. 17, p. 11). The deal with CAW, which represents 3,975 mechanical workers, clerical/intermodal employees, excavator operators, and owner-operator truck drivers at CN and one of its subsidiaries, was reached after a 48-hour negotiation between the two parties. According to a Jan. 24 announcement by CN, the agreement will, upon ratification, provide fair wage and benefit increases to CAW members, and also contain progressive provisions that would help CN retain and attract skilled employees critical to its workforce in the years ahead. CN reported that full details of the tentative agreements are being withheld pending ratification, which the CAW expects to complete before the end of February. Earlier, CN reported that it had established a contingency service plan to operate the railway in the event of a strike, with management personnel performing the tasks of CAW members. The CAW remains in contract negotiations with 2,100 Canadian Pacific Railway Ltd. (CP) employees, with a strike deadline set for 12:01 a.m. on Feb. 8. CAW representatives stated in January that the CP labor dispute centers on both monetary and non-monetary issues, including CP’s plans to close its Ogden shops in Calgary. CP reported on Jan. 13 that it has trained about 1,200 managers and has a contingency plan in place to operate the railway in the event of a strike. Negotiations between CAW and the railways started last fall with collective agreements expiring at the end of 2010. The fertilizer and chemical industries are closely monitoring the labor dispute since past strikes and lockouts have caused significant disruptions to chemical and fertilizer shipments, as was the case in early 2007 when some 2,800 unionized workers at CN went on strike over a disputed pay raise (GM Feb. 12, 2007).