(The following report by Brent Jang appeared on the Globe and Mail website on April 16.)
TORONTO — Nervous industries across Canada are urging Ottawa to end a protracted labour dispute at Canadian National Railway Co., telling the government to act swiftly when Parliament resumes today or risk harsh economic damage from late trains.
Sultran Ltd., which arranges the transport of sulphur, said yesterday that the bright yellow substance — used in fertilizer — is piling up at natural gas plants in Western Canada while supplies at export storage facilities in Vancouver are low. Sulphur is a byproduct of natural gas.
Sultran joined the growing chorus of businesses worried that renewed labour unrest at CN will lead to major disruptions like those experienced during a 15-day strike in February, when an array of sectors were forced to halt or scale back production because of delays in rail shipments.
Canada’s trade surplus shrank in February as the CN strike made it tough for exporters to get their goods to a border or port. The February surplus narrowed to $4.8-billion from $5.8-billion in January, Statistics Canada said.
“The government has to step in,” Daniel Brock, a lawyer and spokesman for Sultran, said in an interview yesterday.
“Our industry is already feeling the pinch in terms of service disruptions.”
In a letter to federal Labour Minister Jean-Pierre Blackburn, Sultran said natural gas producers could be forced to curtail or halt output if the stockpiles of sulphur can’t be transported soon from gas plants to the Port of Vancouver. Canada is a major exporter of sulphur to China.
Sultran has banded with energy producers to press its case to the federal government.
Emma Welford, a spokeswoman for Mr. Blackburn, reiterated the Minister’s position, saying yesterday that Ottawa prefers a negotiated settlement, but is ready to pass back-to-work legislation if and when necessary.
She had no further comment, one day after “exploratory” labour talks broke off between CN and the United Transportation Union.
Management and the union remain far apart on wages and working conditions. Last Tuesday, the UTU announced that its members resoundingly rejected a tentative one-year pact, which was reached on Feb. 24, ending the 15-day strike.
CN began locking out UTU members at eight locations last Wednesday afternoon, following on the heels of rotating strikes that began that morning.
The previous three-year deal expired at the end of 2006, and UTU members refused to ratify a proposed one-year deal that called for a 3-per-cent wage increase in 2007, and a $1,000 signing bonus.
The Canadian Chemical Producers Association describes rail transportation as an essential service for the country’s economy, noting that its members have yet to recover from the February work stoppage at CN. The chemicals group said it was pleased that Mr. Blackburn tabled back-to-work legislation in February, but is now concerned that the bill may not be put back on the order paper immediately.
The Canadian Wheat Board and the Port of Vancouver say a combination of severe winter weather and the CN strike hampered deliveries of grain and other commodities two months ago, and the prospect of more disruptions will have a painful effect on the country’s economy.
An estimated 600 managers filled in for 2,800 striking UTU conductors and yard workers in February.
CN spokesman Mark Hallman said officials with the Montreal-based railway met for five hours Saturday with union representatives, but the UTU wasn’t willing to discuss management’s concerns.
“It’s not a one-way street,” said Mr. Hallman, who added “it’s the government’s decision to make” the call on back-to-work legislation.
In a newsletter, union leaders said that while they don’t wish to “disrupt the whole country,” they are “determined to send a message to CN that its members deserve a better deal.”
Tim Secord, the UTU’s Canadian legislative director, said in an interview that CN’s move to lock out UTU members at eight locations, including the crucial Vancouver terminal, has crimped the union’s plans to stage rotating strikes.
The union strongly opposes back-to-work legislation, and blames CN for being unwilling to improve wages and working conditions, Mr. Secord said.
“CN pretty much walked away from the table. We have to find some way to exert pressure on CN and get them to negotiate,” he said. “What’s the point of scheduling talks? Management pretty much slammed the door in our face.”
No new talks are scheduled between the two sides. In a six-page memo to staff last week, CN chief executive Hunter Harrison said union leaders have been inflexible about changing work rules, including those governing a complex pay system based on train mileage.