An estimated 5,000 railway workers could be back on the job this week, bringing to an end a three-week strike that has had little effect on most grain shipments out of Western Canada.
Canadian National Railway and the Canadian Auto Workers’ Union reached a tentative agreement March 15.
Union members were scheduled to vote this week on whether to accept the three-year deal and return to work. Ratification is not a sure thing, as evidenced by the fact that they rejected a tentative agreement back in January.
Read Also
Trade war may create Canadian economic opportunities
Canada’s current tariff woes could open chances for long-term economic growth and a stronger Canadian economy, consultant says — It’s happened before.
The strike by clerical, administrative and mechanical workers, which began Feb. 20, has had little impact on bulk grain shipments, as CN managers and replacement workers kept trains running.
“We’ve seen a bit of a slowdown, it’s been minimal,” said Canadian Wheat Board spokesperson Louise Waldman, who nevertheless welcomed the tentative agreement.
“We certainly haven’t seen the kind of impact that we might have feared.”
However, grain shippers who use containers say their business has suffered as a result of the dispute and some urged the federal government to enforce an immediate return to work.
Rail operations have been “far from normal” with respect to movement of special crops. Intermodal traffic is down 25-30 percent nationwide and the intermodal yards at Saskatoon – an important centre for special crop shippers – have been closed for extended periods during the strike, forcing special crop shippers to scramble to find containers. In some extreme cases, workers have been laid off and plants closed as a result, said the special crops association.
Canadian Special Crops Association executive director Francois Catellier fears those problems could persist for weeks with the length of time required to conduct the ratification vote and then get rail operations back to normal.
Apart from the immediate impact on farmers and shippers, he said any labour action that affects grain movement hurts Canada’s position in overseas markets.
“I don’t think we should underestimate what this does to our reputation,” he said. “Every time you get one of these it’s another knock against the country and it gives our competitors something to hit us over the head with.”
CN spokesperson Jim Feeny said that while there have been problems shipping grain in containers, those problems are not all related to the labour dispute.
“More containers are looking to leave Saskatchewan than to enter it,” he said, which is an issue that needs to be addressed once the strike is resolved.
According to the CAW union, the tentative agreement provides for annual wage increases of three percent, a $1,000 return-to-work bonus, improvements to shift differentials and extended health benefits and an end to CN’s newly instituted and contentious disciplinary system. CN declined to comment on the terms of the agreement.
