NORTH BAY, Ont. — The group representing unionized workers at the Ontario Northland Transportation Commission says its plan to protect jobs and improve service was unfairly evaluated by the province, the North Bay Nugget reported.
Phil Koning, president of the Ontario Northland General Chairperson’s Association (GCA) — an umbrella group representing six unions at the ONTC — says a joint proposal between commission management and his group was hurt in a review process of the Crown corporation because it could not compete with the Canadian National Railway Co. for a purchase price for the rail freight and passenger services.
“From the beginning, Commission chair Royal Poulin clearly stated the Internal Solution Group (ISG) plan would not have to compete on the purchase price criteria,” Koning said, explaining the Ontario government would retain the ONR’s $186 million in assets and $60 million in annual revenue under the union/management plan.
“As it turns out, the consultants that evaluated our plan assigned a negative value on that criteria.”
Union officials, he said, carried their concerns to Nipissing MPP Al McDonald Saturday during a meeting at his constituency office on Fraser Street. But McDonald said he was not involved in the evaluation process and could only reaffirm the province’s position that a deal will not be accepted unless jobs are protected and service is improved.
“As MPP for Nipissing there will be no job loss on my watch,” he said, adding he has agreed to try to arrange a meeting between Premier Ernie Eves and the GCA.
CN’s purchase is in not a “done deal,” McDonald said, conceding the ISG plan could still be considered if Montreal-based CN fails to meet the objectives set out by the province two years ago as part of its service improvement strategy:
— provide access to quality telecommunications and transportation services;
— support and enhance economic development;
— protect current employment and foster growth of new jobs;
— ensure competitive pricing for customers;
— maintain or enhance service levels; and
— receive fair value.
“CN has been given the exclusive right to negotiate, but from what I understand, the ISG plan hasn’t been dismissed,” McDonald said.
CN announced Friday that through exclusive negotiations with the Ontario Northland Transportation Commission, it expects to strike a deal within the next few months for the purchase of the provincially owned railway.
CN, Canada’s largest railway, said it is positioning itself to grow and is planning to improve freight and passenger services, including the Northlander passenger train and the Little Bear passenger and freight train that runs from Cochrane to Moosonee.
CN also said it will inject new capital into the operation, specifically at the ONR shops in North Bay. A deal, according to the company, is subject not only to negotiation, but reaching a labour agreement with ONR workers — a step, Koning says, that won’t happen soon.
“I have an obligation to enter into negotiations with my employer . . . and CN is not my employer . . . I can’t negotiate with them and I don’t want to,” he said.
Friday’s announcement followed a long process in which the province weighed proposals by the final proponents, including CN, ISG and Canadian Pacific Railway.
The province, however, ultimately decided CN could best meet its objectives of job protection, economic development and improved freight and passenger services for the North.
North Bay Mayor Jack Burrows was undecided about the news. Encouraged by CN’s promise to invest in the railway, he said, “only time will tell” if jobs and service will be maintained.
“We supported the ISG plan because it was based on protecting jobs and service . . . that’s our concern,” Burrows said.
In a telephone interview Friday, Northern Development and Mines Minister Jim Wilson said CN’s track record of protecting jobs — something strongly emphasized in its proposal — was one reason the company was selected.
Koning and the GCA, however, dispute CN’s record, warning the company has an obligation to maximize return on investments to shareholders.
The ONR, which is subsidized both federally and provincially, may continue to indirectly receive funds under CN ownership, he said.
“The province does not give directly to business,” Wilson said, adding he would like to see some closure for ONR employees.
“My personal preference would be to see the process end as soon as possible.” More than two years of uncertainty about the future of the railway has likely taken a toll on workers, Wilson said.
In December 2000, the ONTC announced it had approved a recommendation by Toronto’s KPMG Consulting to divest the Crown corporation of everything but its bus division.
The news was followed by a roaring public outcry, led by the ONTC’s 800 unionized employees, who launched a campaign, which included signs and countless meetings and demonstrations protesting the privatization.