(Reuters circulated the following article by Alan Dowd on March 29.)
VANCOUVER — The labour walkout that disrupted Canada National Railway Co. and drew threats of government intervention could resume immediately if workers reject the proposed new contract, according to a union letter released Thursday.
The 15-day walkout in February by 2,800 conductors and brakemen at Canada’s largest railway, was cited by CN Thursday as one reason it expected its diluted first-quarter earnings to fall 5 per cent to 10 per cent below last year’s.
Results of the mail-in ratification ballot by the members of the United Transportation Union are scheduled to be released April 10.
There is widespread speculation the tentative pact will be rejected because of a split within the UTU, and a call for the workers to switch to the Teamsters union, which already represents CN’s locomotive engineers.
The UTU’s international leadership has urged workers to ratify the one-year deal, but the union’s international president, Paul Thompson, wrote to its Canadian leaders Wednesday saying, “we must make plans to do what is required if it is not.”
Thompson, who had not approved the February walkout, said he was authorizing strike action if the contract deal is rejected, and said it should begin “without delay” after the vote results are announced.
Although the February action was a general walkout, the UTU letter filed with labour regulators said the extent of another walkout would be left to Canadian negotiators and could take the form of rotating strike action.
The international’s authorization of the strike means the workers would receive strike pay to cushion the financial impact of being off the job, something they did not receive in the February walkout.
Supporters of the deal have warned that rejecting the proposal will invite the government to order them back to work and appoint an arbitrator who will impose a contract more favourable to the railroad.
Critics of the contract, including a UTU negotiator sacked by Thompson midway through the February walkout, have accused the union of using scare tactics and say a better deal can be negotiated.
Labour Minister Jean-Pierre Blackburn said Thursday the government is ready to act if needed. CN customers urged Ottawa to intervene in February because disrupted train service was leading to layoffs.
“I want to be clear, Bill C-46 remains on the Order Paper and the government will proceed rapidly with this bill if rail services are again disrupted by this labour conflict,” Blackburn told Parliament.
How quickly the government could act remains a question. Parliament adjourns for Easter on March 30 and is not scheduled to return until April 16.
A government official speaking on background said any intervention would be prompted by service disruptions and not just by the outcome of the vote. Ottawa has said it would prefer the dispute to be settled through negotiations.
A CN vice-president told analysts on Wednesday the company was prepared to resume negotiations if the deal is rejected, but would again use management personnel to keep the trains moving.
CN Chief Executive Hunter Harrison wrote to company managers last week saying they should be prepared for a renewed strike, and warned that workers should not expect the company to improve its offer if talks resume.
“If the settlement is rejected, then both parties will resume their legal right to strike, lock out, or unilaterally implement new wages and work rules, and government intervention is a likely outcome,” the memo said.
The tentative contract deal up for a vote includes a 3 per cent wage hike and a $1,000 signing bonus.