The current labour dispute at CN Rail is having a major effect on some major Canadian industries as it heads into its second week. From grain shipments to the West Coast to Auto plants in Ontario, the wheels of industry are slowing down sending worrisome signs to business leaders.
The two sides have yet to return to the bargaining table, although there is expected to be another meeting of the Industrial Relations Board planned for Monday, part of a call from CN to declare the strike illegal.
Part of CN’s argument seems to be some friction between the Canadian local and the American head office, which some say was against job action from the start.
In fact, the American president is suggesting that strike is the preamble towards the Canadian workers joining the Teamsters and the Canadian president realizing a better job for himself.
These items can all be traced through the battle of the press releases from the UTU head office, the Canadian wing and of course CN's own public relations department.
Many business leaders have taken to calling on the Federal Government to step into the dispute, a call that so far has not been acted upon. The Government won’t make a move on the dispute while it is still involved with the Industrial Relations Board, so all eyes will be on those meetings next week to see where the next steps may lie.
While everyone bickers about the cause, the effect is becoming pretty obvious.
The chemical industry back east is calling the strike devastating for it, with numerous companies slowing down production because they can’t move their product out of the plants.
The auto industry, dependent on the concept of just in time delivery is in a bit of turmoil as the just in time aspect begins to suffer.
The lumber industry is being hit by a double whammy of poor markets and transportation problems; Canfor is planning on cutting production at a number of Interior mills.
Rival rail road CP has even been affected by the dispute, declaring a force majeure on some shipments to the Port of Vancouver, unable to meet delivery deadlines due to congestion at the port caused by the CN dispute, CP is taking the unusual step of stopping shipments of key products widely speculated as being potash and grain.
The strike has affected more than Canadian operations and could have a greater impact on the US economy as well, already reports of propane shortages in Maine have been attributed to the labour problems at CN and the auto industry will no doubt feel the effects in the large American plants as well.
In Prince Rupert of course, the main effect will be on production at the Grain Elevator at Prince Rupert Grain and on supplies of mineral inventories at Ridley Terminals. The Daily News covered the local angle in the Friday paper.
CN strike has grain ships stuck in harbour
By Leanne Ritchie
The Daily News
Friday, February 16, 2007
Page one
More than half a dozen tankers are lining the waterfront in Prince Rupert waiting to be loaded because of delays caused by a labour disagreement between CN Rail and 2,300 members of United Transportation Union.
“Overall, the strike is having some impact on port operations to date,” said Barry Bartlett, Manager Corporate Communications and Public Affair for the Port of Prince Rupert. “We have ships in the harbour waiting for products to arrive by train, particularily grain products.”
According to the port’s Thursday vessel report, seven ships are waiting to load wheat or canola, with another three pending (two for wheat and one for coal.) In the past week, only one ship has loaded and left, the Catriena, which is headed for Sri Lanka with wheat.
“From our point of view, it is imperative CN quickly negotiates a settlement with the United Transportation Union and resume normal operations to Prince Rupert as soon as possible because there are a lot of people being affected by this,” he said.
According to the Canadian Wheat Board, the backlog of grain is compounded by January’s weather related transportation problems.
“This couldn’t come at a worse time because we were hoping the rails would get caught up in February,” said Maureen Fitzhenry, a spokesperson for the Canadian Wheat Board.
Member suppliers are paying about C$150,000 a day in demurrage (penalty) fees for the delays, she said.
A CN spokesperson acknowledged that the labour situation is not making the backlog any better.
“It’s been extremely cold on the prairies and we now have this strike by the UTU and these are challenges but we are doing our best with the resources we have,” said Mark Hallman, spokesperson for CN.
Jeff Burghardt, president of Prince Rupert Grain was unavailable for comment, however CN Rail says it is doing the best it can to keep the trains running on time.
“With the strike, we have management personnel filing in for the striking workers and we are doing the best we can with the resources we have available,” said Hallman.
“We are trying to protect, as best we can, all the core traffic across our system.”
UTU Canada represents 2,800 conductors and yard-service employees at CN in Canada. But hundreds of the workers remain on the job at the moment under an agreement sanctioned by the union.
The strike affects freight service, but not Via Rail or commuter traffic in Montreal and Toronto.
The Wheat Board has complained to the federal government that it has ships waiting on the B.C. coast to be filled with grain that is usually shipped by rail. However, Agriculture Minister Chuck Strahl said the federal government won’t intervene while the Canada Industrial Relations Board (CIRB) is hearing the case. The CIRB will hear arguments from CN and the union about the legality of the walkout on Monday.
UTU International hasn’t approved the strike action taken by its Canadian affiliate and the company argues the strike by UTU Canada members is illegal without the proper sanction.
With files from CP
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