(Bloomberg circulated the following story by Rob Delaney on April 16.)
NEW YORK — Canadian National Railway Co., the country’s largest railroad, said it will seek regional agreements with striking conductors and yard workers because “internal conflicts” in the union prevent a national accord.
The United Transportation Union “has failed to present a unified agenda” on a national settlement for the 2,800 workers, company Chief Executive Officer E. Hunter Harrison said in a statement today. The Montreal-based company said it invited the union to return to negotiations for regional agreements.
No new talks have been set in the strike, which threatens to delay the delivery of 10 million tons of grain and cause port bottlenecks as picketing and company lockouts block shipments. Canadian Labor Minister Jean-Pierre Blackburn today said he resumed a push for legislation to end the walkout. The labor dispute has disrupted the railroad’s operations since Feb. 10.
“We were just getting close to recovering from the dispute in February,” which interrupted shipments valued at C$1 billion ($883 million), Duncan Wilson, a spokesman for the Vancouver Port Authority, said in a telephone interview. “The transportation chain is fully booked for months ahead, so cargo that misses its window represents lost business for Canada.”
`Improvement’ Unlikely
The union began rotating walkouts after members on April 9 rejected a proposed one-year contract. They had suspended their earlier strike, which began Feb. 10, after two weeks to conduct the balloting.
The union said yesterday that Canadian National had “nothing to say to suggest that there might be an improvement” in the rejected proposal. The UTU wants more than the 3 percent pay raise offered in the rejected agreement, as well as improvements in benefits.
Canadian National responded to the rotating strikes by locking out union members at several terminals.
The three-year contract for the conductors and yard workers expired Dec. 31.
Canadian National said today that some union members have been reporting for work while waiting for the outcome of an application by the Teamsters’ Canadian rail division to take over representation of the conductors and yard workers.
Other UTU members are conducting the rotating walkouts, and “it’s increasingly clear that the union today is unable to deliver a national negotiated settlement that its members across Canada would ratify,” the company said.
Legislative Process
Blackburn said today that he resumed the process to pass back-to-work legislation, which would force both sides to submit best-offer proposals to the Canada Industrial Relations Board. That body would decide which offer will prevail.
The labor minister’s Conservative Party government, which has 125 votes in the 308-seat legislature, needs support from opposition parties to pass laws. The Liberal Party, with 100 lawmakers, had agreed in February to back the government on this issue. Support from the Liberals would give the government enough votes to implement a back-to-work law. Blackburn said he expects the Liberals to support the legislation.
Canadian Pacific Railway Ltd. and the Teamsters didn’t begin talks that tentatively had been set to start today for maintenance workers, the union said in a statement. The negotiations between the Calgary-based company and the Maintenance of Way Employees division of the Teamsters Canada Rail Conference broke down March 30, the union said.
Canadian Pacific suggested on April 11 that talks be held today through April 19 in Calgary “but the company has backed away,” the Teamsters said. The workers will finish a strike vote tomorrow and could walk out as early as April 25, the union said.
Company spokesman Mark Seland didn’t immediately respond to a voice-mail message seeking a comment.
Shares of Canadian National rose C$1.28 to C$55.58 at 4:10 p.m. in trading on the Toronto Stock Exchange. They have gained 11 percent this year. Canadian Pacific shares rose C$1.15 to C$68.85 in Toronto before the union released its statement.