(The following appeared at TradingMarkets.com on September 23, 2009.)
WINNIPEG — Officials with Canadian National Railway and the Teamsters Canada Rail Conference Union, which represents roughly 1,700 locomotive engineers, will be meeting again this week in hopes of achieving a new labor pact and avoiding any kind of work disruption.
Two federal government mediators will also be at the meeting.
“CN hopes to achieve a settlement with the TCRC without a labor disruption,” Mark Hallman, Director of CN’s Communications and Public Affairs department, said.
The contract with the locomotive engineers expired at the end of 2008.
Hallman would not discuss the issues that have been considered stumbling blocks in the negotiations of a new contract.
“As a general rule, CN does not discuss publicly the issues being negotiated by the parties, believing those matters are best dealt with at the bargaining table,” Hallman said.
Hallman said there was a process which must be followed by all parties involved.
As required by the Canada Labour Code, the Canada Industrial Relations Board (CIRB), a federal tribunal, is currently reviewing the TCRC’s application as to whether any of CN’s services are essential and must be maintained by TCRC represented employees in the event of a disruption.
The CIRB will hold a conference call with the two parties October 2, 2009, to discuss the issue further.
Hallman said CN foresees no labour disruption during the CIRB’s consideration of the matter, and no strike or lockout can occur until the Board renders a decision on the issue.
“However, in the event there is a disruption, CN is determined to continue to run its operations and serve its customers to the best of its abilities,” Hallman said.
Officials with the TCRC were not immediately available for comment. However, industry sources indicate the TCRC is conducting a strike vote by mail-in ballot.
A rail labour dispute would come at a critical time, as the harvest in Canada is in full gear and the need to meet export commitments at Canada’s export facilities is the heaviest.
As a result, the grain industry in western Canada is keeping a close eye on the negotiation process, brokers said.