NORTH BAY, Ont. — Nipissing MPP Al McDonald went out on a limb this week when he gave his assurances, on behalf of the Ontario government, that there will be no jobs lost if Canadian National Railway buys Ontario Northland’s rail freight and passenger services, according to an editorial in the North Bay Nugget.
If he’s wrong, it could well cost him this riding in the next provincial election, widely expected to be held in the spring.
Critics and union leaders charge that CN’s record of investing and keeping jobs in the North is not particularly good. CN, they say, sold off the repair and maintenance shops in Capreol, which resulted in the loss of 500 jobs, and closed the line between Sudbury, North Bay and Ottawa.
Why should we expect CN to approach this business deal, or any business deal for that matter, without a plan to rationalize service and jobs?
McDonald, for one, believes his government is committed to keeping jobs in the North, including the roughly 600 employed at Ontario Northland in North Bay. Northern Development and Mines Minister Jim Wilson echoed that position when he said Premier Ernie Eves has made job protection his No. 1 criteria, and that criteria became part of the plan to sell Ontario Northland. We’ll see.
CN, for its part, seems willing to go along with the idea. While no one has come right out and said no jobs will be lost, the company has indicated it plans to invest in Ontario Northland — integrate ONR shops in North Bay into CN’s system, maintain employment levels and invest in new equipment to increase opportunities and capabilities. The company is even committed to refurbish the Northlander and work out schedules with the communities it serves.
On the surface, that would appear to meet the government’s No. 1 criteria. It will be up to negotiators and government officials to ensure that commitment does not falter, or face voters with a broken promise.
North Bay can ill afford to lose any Ontario Northland jobs. Layoffs have been announced within the city. Meanwhile, 140 jobs will be lost in Sturgeon Falls with the closure of the Weyerhaeuser mill and another 64 jobs are gone at Tembec’s mill in Mattawa. As devastating as that news is to those communities, the reality is that those people shopped in North Bay. Any further job loss at Ontario Northland would be staggering.
It’s true the purchase of Ontario Northland by CN is far from being a done deal. It’s quite likely there remain a number of stumbling blocks to a final deal, as is true with any negotiation.
There has been speculation that pensions are a major obstacle. ONR union leaders may well be right that the Internal Solution Group, a proposal developed by union and management officials, could be the only plan left on the table if CN fails to get the deal it wants.
For now, if it truly is the best deal on the table for the moment, we’re hopeful a deal can be reached with CN to buy Ontario Northland’s rail freight and passenger services — without any loss of jobs and with some significant investment to ensure the company’s long-term viability. That would be the best news this community has had in some time.