(Reuters circulated the following article on October 23.)
VANCOUVER, British Columbia — BC Rail, Canada’s third largest railway, said on Thursday it had reached a tentative agreement with its unions as the provincially owned company awaits word on a pending privatization.
Terms of the labor agreement were not immediately released. A vote by the approximately 1,500 workers was expected to take about six weeks to complete. The previous contract expired at the end of last year.
British Columbia is seeking a private company to take over operations of the 2,315 km (1,450-mile) railway, which reported an operating profit in its last fiscal year but has struggled under a debt of more than C$590 million.
Canada’s two largest railways, Canadian National and Canadian Pacific, have submitted bids, as has private shortline operator OmniTRAX in co-ordination with U.S.-based Burlington Northern Sante Fe Corp. .
BC Rail’s unions, who bargain in a joint council, have strongly opposed the plan to lease the publicly owned tracks to a private operator because it is expected to eliminate hundreds of jobs.
The provincial government had been scheduled to select a final bidder by the end of September, but officials are reviewing the proposals.