MONTREAL — The union representing conductors and rail yard coordinators in Canada has given Canadian National Railway 72-hour notice of its intent to strike. The strike could begin at 12:01 a.m. Eastern time on Tuesday.
The Teamsters Canadian Rail Conference — Conductors, Trainpersons and Yardpersons (TCRC-CTY) represents approximately 3,200 CN employees. It served notice of its intent to strike the day after the railroad confirmed it had begun layoffs of management and union employees in the U.S. and Canada [see “CN to cut jobs; report says up to 1,600 could be affected,” Trains News Wire, Nov. 16, 2019]. The potential strike will only affect operations in Canada.
In a CN news release, Rob Reilly, CN executive vice-president and chief operating officer, said, “We continue to negotiate in good faith to reach a fair agreement before the strike deadline. In the spirit of protecting the Canadian economy, we have offered the union binding arbitration and they have declined. If a settlement cannot be reached this weekend, we will once again encourage the union leadership to accept binding arbitration as an alternative to disrupting the Canadian economy. We remain committed to constructive talks to reach an agreement without a work stoppage.”
A statement on the union’s website says wages are not the major issue in the negotiations. It cites safety issues regarding remote-controlled locomotives and other work rules, and prescription drug coverage, as key points of contention.
The union says the railroad is seeking arbritation because it “hopes to achieve gains that could not have otherwise been made by negotiating in good faith.” Earlier, 99.2% of union members had voted in favor of a strike [see “CN workers set to strike in November,” Trains News Wire, Oct. 29, 2019].
Union President Lyndon Isaak said the railroad “made over $3.8 billion in the third quarter of 2019. They should be ashamed to be pleading poverty. This obsession with profits and shareholder return, at the expense of just about everything else, is exactly what is wrong with our economy.”
As of Saturday, negotiations were continuing.
Eric Schneider eloquently stated that 99% of the union members are for the strike. Really? It used to be that when the thug leaders spoke, 100% did their bidding, regardless of the situation
On a related note, check your specific investments of your own 401k’s. Good chance their is a choo-choo train company in there. Don’t you just hate that increase in your personal net worth?
I e been watching with interest as we return to the (roaring?) ‘20s. Is history about to repeat itself between owners and unions? In any case, a strike vote supports by over 99% says something…
The CN workers stated their major concerns were not wages but safety and prescription drug prices (presumably on those employees working in the U.S.). Derailments on both CN and CP call into question operating practices permitted by the Transportation Safety Board (Canada). I don’t think there can be any question that DS usage is a trip into unknown realms where safety is concerned. The results so far beg the question of just how tolerable the occasional derailment is. Perhaps the insurance companies will provide a conclusive answer, especially after Lac Megantic.
Remote operation is, according to Fortune magazine, on the horizon, predicated on Australian experience. Downhill, single commodity operation in an unpopulated desert is not at all comparable to the mixed commodity, undulating profile, variable weather operations in populus communities in N. America. I’m repeating myself for the nth time but I would simply suggest a crewless train, regardless of how sophisticated an AI package might be, simply cannot respond to the situations of a train out on the high iron. Ditto for 18 wheelers on public highways. If railroads, with their inherent cost advantages of fuel and labor per tare ton mile, can’t compete with trucks, it says a lot more about about current practice than it does about fundamental capabilities. Why can’t some bright young programmers run a series of simulations with different variables to find the most efficient operating practices? It shouldn;t even take too long.
I can’t read the article because I don’t a subscription. “Union says” I will not believe that statement because its “war cry” in my view. I could say the union is not bargaining in good faith either. I’m not there.
@Steven Bauer- I don’t know where you got execs out of my statement, but here you go. I’ve been on both sides on contract and non contract work. I’ve dealt in labor relations, and so forth. My experience gives me the ability to speak on this matter. Skilled workers such as yourself who deserve good pay is not the qualm.. It’s demands based upon certain aspects of operation where they go above an beyond. Are concerns of employees important? Of course, and at the end of the day the Union is not in anyone’s best interest when you’re behind the scenes. Have you not been paying attention to the UAW? Now your local might be organized and respectful to it’s members. Yet the overall Teamsters organization is otherwise..Oh, and execs of large corporations always make a pretty penny, but you fail to realize all the small to medium companies execs who are the majority and make “chump change”..
When executives fail to grow business in a robust economy and still get filthy rich its time to side with the unions.
I haven’t seen anything to suggest that CN is pleading poverty. The layoff is a preemptive measure based on projected future reduced earnings. The labour dispute appears to be an entirely different matter.. workers have legitimate safety and scheduling concerns that need to be addressed.
Braden Kayganich – I see you have weighed in again { lightly, as usual } with “Union’s { union’s what???…..no need for the apostrophe, fella } go above & beyond with disruption instead of working with all parties to resolve.” What? You read the article, no? “The union says the railroad is seeking arbitration because “it hopes to achieve gains that could not have otherwise been made by negotiating in good faith.” Pretty self explanatory & yet….somehow…you seem to think that it’s the union that is acting nefariously with your “go above & beyond with disruption” & “they cause more hassle” comments. The article goes on with “wages are not the major issue in the negotiations. It cites safety issues regarding remote controlled locomotives and other work rules, and prescription drug coverage, as key points of contention.” Guaranteeing membership a safe workplace is one of the many goals of labor unions. Securing medical benefits is another.The union is doing exactly what its membership pays them to do here. Your “instead of working with all parties to resolve” means you’ve apparently missed the statements “We continue to negotiate in good faith to reach a fair agreement before the strike deadline” & “We remain committed to constructive talks to reach an agreement without a work stoppage” which sounds to me like both sides { “all parties” } are clearly working to avoid a strike. As they say, Braden…if you can’t run with the big dogs, stay up on the porch.
No one seems to mention how much capex investment CN made in the same profit period. I love it when people throw numbers around so freely and make people think it all belongs to them.
CN brought in 3.8 billion in revenue, but income was $1.6 billion.
Revenues increased by four per cent, or C$142 million, to C$3,830 million.
Diluted earnings per share (EPS) increased by eight per cent (or 11 per cent on an adjusted basis (1)) to C$1.66.
Operating ratio of 57.9 per cent, an improvement of 1.6 points.
Operating income increased by eight per cent, or C$121 million, to C$1,613 million.
Strong balance sheet with adjusted debt-to-adjusted-EBITDA of less than 2.0X (1)?.
“Canadian National Railway Co. will likely top C$3 billion ($2.3 billion) in capital spending for the second straight year in 2019 as it aims to speed up trains and capture rising demand for freight such as grain and crude oil, its top executive said”
So of the $1.6 billion they made, a third was put back into the supporting infrastructure. So the unions should be saying “CN has just over a billion per quarter to spend on improving benefits.”
If you want more details on CN financial performance.
https://www.cn.ca/en/news/2019/10/cn-reports-strong-third-quarter-financial-results/
Ahh, the other voice heard from that says everything is the fault of the union. And obviously believe Braden that everything the railroad Execs ask for is legit?
This going to be the common theme in the US contract talks as well. Traffic down, earnings down, screaming poverty. But yet somehow the Execs will reward themselves bonuses even though traffic is down and earnings are down. So how is it the rank and file is asked to sacrifice, while the bosses reward themselves even though the financials will be worse than last year? Rewards for poorer performance? The record OR the bosses will be rewarded for was pretty much realized through cost cutting (letting people go), rate increases (excuse me, the warm and fuzzy term “Core Pricing Gains), and share buybacks. So in a sense, they will be getting bonuses financed in part off the backs of the people that were let go. Let’s not forget that one company even manages to have money to have a steam engine out on a big PR tour for the foamers and public.
You will excuse me Braden if I don’t apologize for what I make.
Union’s go above and beyond with disruption instead of working with all parties to resolve. They cause more hassle.. Oh but lets not mention all the corruption in the Union offices shall we…..
A hundred thirty years ago we had the Gilded Age and it was working man be bleeped. The stockholders were all important, wages were starvation level, and the labour movement emerged. It was a response by the working class to being stepped on by the owning class, and is an excellent example of a class war.
In the latter part of the 20th century unions became not just a solution, but part of the problem of how to equitably manage the economy. Union busting emerged, union participation diminished, and we have come pretty much full circle to a New Gilded Age.
These things run in cycles. There is no way I can know the specifics but we will see one of two things happen. Either the organized labour movement will see a resurgence or things will finally get so bad the man in the street rebels.
If you would like to know more there are a couple of books to read. The first is “The Peoples’ History of the United States” by Howard Zinn; and the second is “The Anatomy of Revolution” by Crane Brinton.
The above comments are genetic in nature and do not form the basis for an attorney/client relationship. They do not constitute legal advice. I am not your attorney. The three great traditions of the Senior Service are rum, sodomy, and the lash.
The stock holders must be paid ! S…. the employees !
3.8 Billion profit in one quarter. And it’s never enough. That’s what’s wrong with both the Canadian economy and the economy here in the U.S. GREED!