A last-minute deal between Canadian National Railway and the Canadian Auto Workers union averted a strike that was scheduled to start at 1 a.m. Jan. 25.
Although the railway promised to use management to keep trains running if a labour stoppage occurred, shipper groups said they feared disruptions in freight movement.
Both sides issued statements indicating that settlement details will not be released until CAW members voted on the proposed deal, expected in mid-to-late February.
CN said the settlement is fair to both sides.
“The agreements would, upon ratification, provide fair wage and benefit increases to CAW members,” said the company statement. “In addition, the settlements contain progressive provisions that would help CN retain and attract skilled employees critical to its workforce in the years ahead.”
The 3,975 unionized workers have been without a contract since Dec. 31, 2010. The CAW represents mechanical, clerical, excavator operators and truck drivers at the railway.
Meanwhile, Canadian Pacific continues to bargain with the CAW while facing the potential of a strike as early as Feb. 8.
The union represents 2,100 mechanical services employees who inspect and repair rail cars and locomotives.
CP has announced that it has trained 1,200 managers to conduct the necessary inspection and repair work if a strike occurs.
“The company remain optimistic for a negotiated settlement,” it said.
