CN Rail, union reach tentative deal, avert strike

Canadian National Railway (CN) and the union representing about 3,000 railway workers reached a tentative contract agreement Monday afternoon, avoiding a strike rail shippers said would have created “dramatic negative consequences” for the Canadian economy.

The Teamsters Canada Rail Conference, representing CN conductors and other rail workers, issued a 72-hour strike notice on Saturday after negotiations appeared to fall apart due to the introduction of changes to work rules the union said would “permanently and irreparably impact workers.”

After negotiating through the weekend, CN and the Teamsters’ bargaining team, alongside federal mediators, managed to reach a tentative agreement Monday afternoon, both parties confirmed to the Financial Post, hours before the early Tuesday morning strike deadline.

Teamsters withdrew its strike notice after CN withdrew its notice to unilaterally impose changes to the collective agreement on the table, the union said in a statement.

The details of the agreement are being withheld until it is ratified by the union. The ratification process is expected to take about 60 days, CN said.

Mike Cory, CN’s executive vicepresident and chief operating officer, said in a statement that the Montreal-based company is pleased to have reached a settlement without a service disruption.

“This new agreement reinforces CN’s commitment to working together with our employees and their representatives to address workplace issues in a mutually beneficial matter,” Cory said.

Roland Hackl, vice-president of Teamsters and its lead negotiator through the bargaining process, thanked the union members in a statement for their “incredible support throughout these difficult negotiations.”

Concerned rail shippers said a strike would have been damaging for the economy, and would have led to backed up shipping ports and potential layoffs.

Bob Masterson, the chief executive officer of the Chemistry Industry Association of Canada, said a complete work stoppage would have caused plant closures in the $55-billion chemicals and plastics industry.

“In the case of a complete work stoppage, it would shutter most of our businesses within 48 hours, maximum,” he said.

The Freight Management Association of Canada, which represents more than 100 companies working in agriculture, mining, forestry and manufacturing, sent a letter to federal Labour Minister Patty Hajdu over the weekend, urging government intervention ahead of the strike.

Bob Ballantyne, president and chief operating officer of the Freight Management Association, said the aversion of a strike is “great news.” He had warned that a strike could lead to stalled operations, plugged shipping ports and potential layoffs at companies across the country.

Now, Ballantyne hopes the government will re-evaluate the role it plays in such labour negotiations.

The government really needs to look at the whole concept of (rail) strikes in this industry.