(Bloomberg News circulated the following story by Rip Watson on March 15.)
NEW YORK — Canadian National Railway Co., Canada’s biggest railroad, said it agreed with a union representing 1,750 locomotive engineers to postpone a possible work stoppage until May 15.
The agreement to resume talks with the Teamsters Canada Rail Conference follows a government ruling last night that would have allowed the union to strike in as few as 72 hours. The International Brotherhood of Electrical Workers, also covered by the ruling, hasn’t signed such an agreement, railway spokesman Mark Hallman said.
The Canada Industrial Relations Board paved the way for a possible strike after ruling that a walkout wouldn’t pose an immediate threat to consumers. Canadian National plans to keep hauling freight if there’s a strike and is “optimistic” that one can be avoided, the company said in a statement distributed by CCN Matthews.
Montreal-based Canadian National last month told the labor board that fuel and grain shipments might be disrupted by a strike. The railway in February reached a tentative agreement with the United Transportation Union, whose 2,520 members work with engineers on the freight trains.
A 28-day strike last year by 5,000 clerical and cargo terminal workers cost the company C$24 million, or 8 cents a share. The unions didn’t return calls requesting comment.
Canadian National shares rose 35 cents to C$75.07 at 4:10 p.m. in trading on the Toronto Stock Exchange and have gained 46 percent in the past year.