Tories prep back-to-work law for Canadian Pacific Railway

May 23, 2012 11:05

Federal Labour Minister Lisa Raitt says she's giving notice of legislation to send Canadian Pacific Railway's striking workers back to work after engineers and other workers walked off the job this morning.

Raitt urged Canadian Pacific Railway and its striking workers to keep negotiating but said she's being prudent by putting the legislation on the order paper in the House of Commons. The announcement came 10 hours after the workers went on strike.

"If they cannot conclude their deal, we will have the ability to intervene," Raitt told reporters in Ottawa.

Raitt says the parties are still at the table and are getting closer to agreement, but she wants to have the option of back-to-work legislation in case they don't reach a deal.

Raitt says the government estimates a strike could cost more than $500 million a week.

The House of Commons isn't sitting this week, with MPs working in their ridings, so the legislation isn't likely to start moving through Parliament until next week. Raitt wouldn't say whether the government is considering calling MPs back to the House for an emergency sitting.

Asked whether Canadian Pacific asked for the legislation, Raitt said no.

Workers started strike Wednesday

The workers went on strike early Wednesday morning after last-minute negotiations before the midnight deadline failed, the Teamsters union says.

Freight service has been suspended across the country.

"We have made every reasonable effort to get a settlement, said Doug Finnson, vice-president of Teamsters Canada Rail Conference (TCRC). "Every union member knows how important the outstanding issues are. We will not walk away from the negotiation table."

Raitt's office released a statement Wednesday morning saying the federal government is concerned the work stoppage will have a negative effect on Canadian businesses.

"The best solution is always the one that the parties reach themselves," Raitt said. "I urge the parties to resume negotiations and work diligently to reach negotiated agreements or agree to submit to a binding process to settle their disputes."

The TCRC told CBC News earlier Wednesday that they were pleased with Raitt's approach and would be surprised if she moved to back-to-work legislation any time soon.

Officials with Canadian Pacific Railway and the union met with Raitt on Tuesday morning, where they agreed that commuter trains in Montreal, Vancouver and Toronto will keep running in the event of a strike.

Expected to stop shipments

The strike is expected to halt shipments of grain, fertilizer, coal and other goods CP moves along nearly 24,000 kilometres of track in Canada and the U.S.

Two intercity Via Rail routes in Ontario that use CP infrastructure will be affected by the strike. Via Rail said on Wednesday that passengers travelling between Ottawa and Toronto will have to take buses between Ottawa and Brockville, with train service still available on the journey between Brockville and Toronto.

The Toronto to Sarnia route is also affected, with four trains cancelled - numbers 85, 86, 88 and 89 - and buses provided as an alternative. Trains from White River to Sudbury have also been cancelled numbers -185 and 186 - with buses providing alternate transportation.

The TCRC represeéénts 4,800 engineers, conductors and rail traffic controllers in Canada. The union and CP have been negotiating since October in an attempt to renew the collective agreements that expired Jan. 1, 2012.

Finnson says the major points of contention for the union are pensions, some work rules and fatigue management.

Management shakeup at CP
The strike comes at a time of major changes at Canada's second-biggest railway. A bruising months-long proxy fight with the railway's biggest shareholder culminated last week in Fred Green's exit as CEO.

New York hedge fund Pershing Square Capital Management argued the railway was lagging under Green's leadership and that a change was necessary.

Green and five other board members stepped down hours before the company's annual general meeting last Thursday after shareholders voted overwhelmingly for director nominees on Pershing's slate.

The Teamsters' Finnson said the union has not yet met with Green's interim replacement, Stephen Tobias. He said the management shakeup has not affected the bargaining process.

source

I am not surprised. But there is beginning to be a /very/ worrying pattern of this happening any time any union even tangentially related to the public goes on strike. I'm starting to think that that Canada wide general strike we (@ a union conference) kind of had a half joking conversation late one night might actually be a lot more needed than I thought.
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