CN strike ends

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CN/TCRC

The strike by locomotive engineers at CN (TSX: CNR)(NYSE: CNI) will end immediately as a result of an agreement to resolve the parties’ contractual disagreements through further negotiations and, if necessary, binding arbitration. The union began its strike Nov. 28.
E. Hunter Harrison, president and chief executive officer, said: “CN is pleased that an agreement has been reached to end the strike by the Teamsters Canada Rail Conference (TCRC) immediately and to move forward with a process that gives the parties flexibility to negotiate issues further, but also ensures finality through binding arbitration of issues that remain in dispute. We have always sought, since starting negotiations 14 months ago, to achieve a settlement with the TCRC through negotiations or binding arbitration.
“I also thank the many CN employees who have stepped forward during the unfortunate labour dispute to keep the company’s freight operations going. Keeping our trains running has been important to our customers and indeed the entire Canadian economy.”
“The most contentious issue of having the mileage cap raised to 4,300 miles per month was resolved at the last minute.” stated TCRC President Daniel J Shewchuk, “Despite the threat of impending back to work legislation, it was made clear that any increase to the mileage cap would not result in an agreement” he added.
CN and the TCRC have agreed to continue negotiations to resolve all issues related to wages, benefits and work rules. If there is no agreement, the parties’ wages and benefits offers will be subject to final, binding arbitration.
The parties can also agree to submit work-rule issues to binding arbitration but only if they mutually agree on the ones that should be subject to arbitration. If there is no agreement, the issues in dispute will not be subject to arbitration.
As part of this process, CN will roll back the monthly mileage cap for locomotive engineers to the previous 3,800 miles from the 4,300-mile cap initiated Nov. 28, and withdraw its plan to apply a 1.5 per cent wage increase to TCRC members. The union’s current contract expired on Dec. 31, 2008.
The new agreement provides for the parties to continue negotiations for a defined period of time in an effort to resolve the outstanding issues with a process that would require mutual agreement between the parties to submit any of the outstanding issues to arbitration. Wages and benefits, if unresolved, will be submitted to arbitration.
The agreement was a culmination of a very difficult round of negotiations and the Teamsters Canada Rail Conference would like to thank all their members for their support during this arduous process.