(Reuters circulated the following article on March 10.)
MONTREAL — Canadian National Railway Co. said on Wednesday it is willing to go to binding arbitration to settle a three-week strike of nearly a quarter of its work force.
The move comes two days after CN, which runs Canada’s largest railway, broke off talks with the Canadian Auto Workers union because of what the company said were “economically unrealistic demands” from the union.
The break-off of bargaining talks sparked increased concern among Canadian shippers, which have suffered from delays since the strike began last month. Many have turned to more expensive truck deliveries to move container shipments.
If the union refuses to submit contract talks to an arbitrator, CN said it would consider resuming normal bargaining, but only if the union calls off the strike.
The Montreal-based railway also proposed that the union submit a final company offer to its members for a vote.
“We would put a final enhanced offer to the union for a ratification vote and that would put our best foot forward in that situation,” CN spokesman Mark Hallman said.
Union officials were not immediately available for comment.
About 5,000 mechanics, clerks and container yards workers went on strike on Feb. 20 after rejecting an offer that included 3 percent annual wages increases.
The company improved its offers with signing and performance-based bonuses, but pulled them back on Sunday night when it decided to walk away from the bargaining table.
“Faced with excessive demands, the company deemed the negotiations to have reached a stalemate,” CN said in a statement.
CN stock was down 47 Canadian cents at C$51.12 on the Toronto Stock Exchange on Wednesday afternoon, and down 39 cents at $38.58 in New York.