(Reuters distributed the following article by Charles Grandmont on February 26.)
MONTREAL — Canadian National Railway Co. resumed contract talks on Thursday to end a week-long strike that is threatening to spread from its offices and container yards to its locomotive cabins.
The railway, which carries more than half of Canada’s rail traffic, and the Canadian Auto Workers (news – web sites) union met for an hour in Montreal under the supervision of three government mediators, the union said.
“We didn’t put any specific demand on the table, they didn’t put any offer,” union negotiator Abe Rosner said.
“It was more of an exploratory meeting,” he said. “Talks will continue, that’s for sure.”
About 5,000 CN mechanics, clerks and intermodal yard workers — about a quarter of the company’s work force — went on strike last Friday after rejecting a 3 percent pay offer. CN’s U.S. workers are not on strike.
CN has called on managers and contractors to keep its operations running, but some 130 locomotive engineers, members of the Teamsters union at CN’s terminal in Winnipeg, Manitoba, have threatened to walk out on Friday.
In a letter sent to CN president and chief executive Hunter Harrison, the Teamsters said a locomotive engineer was injured after his train was hit by a train operated by a manager.
“The entire Winnipeg terminal is an unsafe workplace,” the union said in the letter.
The union representing CN signal and communications employees also said it was concerned for the safety of its members.
“The CN managers who are replacing CAW workers are starting to look beat,” said Kevin Kearns, chairman of the International Brotherhood of Electrical Workers.
CN spokesman Mark Hallman denied any safety problems at the Winnipeg terminal or elsewhere on the CN network, which stretches across Canada and down through the United States to the Gulf of Mexico.
DELAYS IN GRAIN SHIPMENTS
The strike continued to cause some delays for shippers on Thursday, but CN said full service was restored to Ford of Canada and General Motors of Canada.
“Our system remains fluid and we are at close to normal operations,” Hallman said.
Grain shippers said they were worried that a strike in Winnipeg could keep grain from getting to ocean ports for export.
“If our ability to move grain is impacted by the engineers not working, obviously that’s a serious concern for us,” said Louise Waldman, spokeswoman for the Canadian Wheat Board.
Agricore United, Canada’s largest grain company, said the strike has caused some delays in deliveries of specialty crops such as beans, mustard, lentils, peas, canaryseed and chickpeas.
The crops are normally shipped in intermodal containers but intermodal yard operations have been slowed by the strike.
“It’s still not a huge problem, but we’re starting to feel the impact of it,” company spokeswoman Radean Carter said.
Rail analysts are expecting a quick resolution to the strike. The union would not want to create a too severe disruption to the economy for fear of government imposed settlement, while CN would wish to limit the stress on its network, they said.
“As the strike has lasted almost a week, the network is undeniably impacted, and excess costs are likely to exceed any savings from the salaries not paid to striking workers,” Deutsche Bank Securities analyst John Barnes said in research note.
Canadian Prime Minister Paul Martin reiterated his government’s decision not to intervene to end the strike.
“We’ll let the negotiation process proceed,” he said in Vancouver.
CN stock ended down 80 Canadian cents at C$52.15 on the Toronto Stock Exchange on Thursday, and down $1.03 at $58.40 in New York.