Signal and communications workers went on strike at the Canadian National Railway Co. in a development that threatens to exacerbate transport bottlenecks across the country amid the COVID-19 pandemic. About 750 members of the International Brotherhood of Electrical Workers in Canada resigned on Saturday after failing to agree on a new railroad contract, union negotiator Steve Martin said in an interview Sunday afternoon. CN later confirmed his departure. The two sides are not meeting in person, but are continuing to discuss and exchange proposals for contracts, Mr Martin said. CN said in a statement Monday that normal operation was continuing safely and that it had implemented an emergency plan that would allow the railroad to maintain normal operation and serve customers “for as long as required”. An ongoing strike could cause another blow to supply chains in Canada and boost prices for goods already affected by the pandemic. Last year in British Columbia, mudslides and floods disrupted all major highways between the Lower Continent and the Inland, as well as freight routes used by the Canadian National and rival Canadian Pacific. There is no impact on business at the moment and none is expected, said CN spokesman Jonathan Abecassis. The union has challenged this view, saying the consequences are inevitable if the strike continues. “The impact on business is very likely,” said Martin. This is due to the fact that a large percentage of employees are on duty responding to problem situations such as the effects of storms, he explained. Others do preventive maintenance. The striking workers repair and maintain CNG track and side electrical equipment, such as walkways, track signals and switches. This equipment dictates the possible speed of trains, in the same way that traffic lights dictate the speed of motor vehicles on the road, Mr. Martin said. CN intends to use managers and contract workers to do the job as required, Mr Avekasis said. It was not clear how this would be possible in Quebec, which has strict laws against the use of non-executive replacement workers in a situation of labor conflict. Mr Avekasis said CN’s contingency plan was in line with applicable law. The union last week gave the company a 72-hour notice of its intention to strike. The company offered to settle the remaining disputes with the union, mainly over salaries and allowances, through binding arbitration. On Monday morning, CN published a letter written by Rob Riley, its chief operating officer, to the striking employees. In it, Mr. Reilly says the company is disappointed that the union rejected the company’s latest offer and clarifies the details of that offer. According to the letter, it includes a 10 per cent pay rise for three years, as well as more paramedical benefits and mental health support. “We have met or exceeded each of the union’s demands in an effort to reach an agreement,” Mr Reilly said in the letter. “I sincerely hope that we can reach a solution as soon as possible.” An important issue at stake is what is called “off-site work,” Mr Martin said. The company wants to be able to move employees from their area of origin for a certain number of days at a time, Martin said. The same issue arose during the previous contract negotiations, which resulted in a five-year collective agreement that expired at the end of 2021. The last major strike in the CN was in November 2019, when about 3,000 conductors, trainers and yard workers represented by Teamsters Canada resigned for eight days. The disruption froze shipments and hit several sectors across the country. Your time is precious. Have the Top Business Headlines newsletter with convenient delivery to your inbox in the morning or evening. Register today.
