END IN SIGHT
CN and Teamsters reach tentative deal to put stop to nationwide rail strike
MONTREAL — An end to a nationwide rail strike that has gripped the country for eight days is within sight, but concerns over the economic fallout still linger.
Canadian National Railway Co. and Teamsters Canada reached a tentative deal Tuesday to renew a collective agreement for more than 3,000 workers, ending a strike that halted shipments, triggered layoffs and disrupted industries across the country. Normal operations at CN were to resume Wednesday across Canada, the union said.
Details of the agreement, which must be ratified by union members, were not immediately available. Ratification is expected within eight weeks.
The federal government had faced mounting pressure to resolve the strike — either through mediation, arbitration or legislation — as premiers and industry voiced concerns about lost profits and a critical propane shortage in Quebec.
However the government said it believed that the quickest way to end the dispute would be a negotiated settlement hammered out at the bargaining table.
About 3,200 CN conductors, trainpersons and yard workers across the country, who have been without a contract since July 23, walked off on Nov. 19 over worries about long hours, fatigue and what they consider dangerous working conditions.
Labour Minister Filomena Tassi and Transport Minister Marc Garneau congratulated the two sides for reaching a settlement.
Tuesday’s deal came a day after Nutrien Ltd. announced that it would temporarily shut down its largest potash mine, laying off 550 employees in southeastern Saskatchewan for two weeks starting Dec. 2 as a result of the strike. The fertilizer giant said Tuesday the layoffs will go ahead despite the deal.
“In terms of the backlog that was created with the supply chain due to the strike over the past week, it’ll take some time to recover,” Nutrien spokesperson Jeff Holzman said.
The strike, had it continued through the end of the week, could have cost the Canadian economy between $1.6 billion and $2.2 billion, according to TD senior economist Brian DePratto.
The Mining Association of Canada said the impacts “will continue to be felt for the foreseeable future,” as each day of disrupted service requires about a week to move the backlog.
The Agricultural Producers Association of Saskatchewan demanded Garneau ask CN for an immediate update on its winter shipping plans.
“We need to know how CN plans to make up the shipping shortfall,” association president Todd Lewis said in a statement. “This is crunch time for our cash flow and producers need to move grain to get paid.”