The threat of labour unrest at Canada’s national railways has disappeared for the next several years.
The Canadian Pacific Railway and the Canadian Auto Workers reached a tentative deal on a new contract yesterday that covers 2,200 employees who inspect and repair rail cars and locomotives.
The workers had been without a contract since Dec. 31, 2010, and could have legally have gone on strike Feb. 8.
A federal government mediator kept both sides at the table and helped forge a settlement.
Details of the tentative deal will not be released until workers vote within the next several weeks.
“I appreciate the effort that both parties put into achieving this agreement,” labour minister Lisa Raitt said in a statement. “I also commend CP and CAW-Canada for their commitment to finding a negotiated solution to their differences.”
A settlement at CPR had been expected since rival Canadian National Railway reached its own deal with the CAW Jan. 24, just hours before employees were set to walk off the job.
CN announced Monday that the majority of the 3,400 affected workers had ratified the four-year contract. It should guarantee labour peace until Dec. 31, 2014.
The CPR contract is expected to be similar.
“The agreements retroactive to Jan. 1, 2011, provide wage and benefit increases to CAW members,” said CN.
“In addition, the settlements contain progressive provisions to help CN retain and attract skilled employees critical to its workforce in the years ahead.”
