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CN warns of ‘significant disruption’ as strike continues

Federal minister urges Canadian National and Teamsters to reach agreement as walkout by 3,200 conductors, transpersons and yard workers continues.

A CN train heads to its next destination (Photo: CN)

Ahead of a new round of contract talks, Canadian National (NYSE: CNI) warned of a “significant disruption” to service from the ongoing strike by about 3,200 employees. 

“We are disappointed that the TCRC (Teamsters Canada Rail Conference) has initiated strike action,” Janet Drysdale, CN’s vice president of financial planning, said during the Scotiabank Transportation and Industrials Conference on Nov 19. 

Drysdale did not detail the specific impacts of the strike by conductors, transpersons and yard workers, which began at 12:01 a.m. Nov. 19. But any significant disruption to Canada’s largest rail network could hurt the national supply chain and economy since CN transports more than C$250 billion in goods each year. 

The federal government, which has been mediating talks between CN and the Teamsters, urged the two sides to reach an agreement. 


“The government of Canada understands the importance of the rail industry and its workers to the Canadian economy,” Labor Minister Patty Hajdu said in a statement. “While we are concerned about the impact of a work stoppage on Canadians, we remain hopeful they will reach an agreement.”

The CN and Teamsters officials were slated to return to contract talks later in the day Nov. 19. At issue are safety, work conditions and benefits. 

“Unfortunately, we were unable to reach a deal with CN. The company remains unwilling to address our members’ health and safety issues. As a result, CTY members at CN will be on strike,” the Teamsters Canada Rail Conference wrote in an update to members

Earlier, Chief Operating Officer Rob Reilly said, “If a settlement cannot be reached this weekend, we will once again encourage the union leadership to accept binding arbitration as an alternative to disrupt the Canadian economy.”


The CN workers have been without a contract since July. 

The strike followed an announcement by CN that it planned to cut jobs in response to worsening economic conditions. 

Joanna Marsh of FreightWaves contributed to this story.

16 Comments

  1. Noble1

    Better yet , why don’t YOU the dependants on CN Rail give Bill Gates a call . Apparently he’s the biggest share holder of CN Rail .

    Get the major shareholders on the line and see if you can get THEM to reason . Or collectively buy yourselves major positions in CN Rail stock and have a say that bypasses government and manage it better than current management is .

    Gees man , you big oil and big agriculture are giving up control on your livelihood dependency, WHY ??? Rather than begging government , perhaps you should have a little more “pride” and question yourselves about how you can solidify your needs to be reliable without interruption . BUY YOUR WAY IN TO HAVING A SAY WHERE IT COUNTS and treat the ones who enrich you with dignity !

    WOW ! What a freaking concept ! LOL !

    In my humble opinion …………

  2. Noble1

    A lengthy CN strike could hit country hard, with no remedy available from Parliament

    Quote:

    “Trudeau has said he is not reconvening Parliament until Dec. 5, and the government cannot start the process to force workers back on the job until then.”

    Again rather than attempting to force workers back to work who are striking for safety reasons through parliament, why not simply put pressure on CN ??? After all YOU the CLIENTS are their bread and butter . How dare CN put YOU the CLIENTS in such an economic dire position due to their worker safety neglect ! Attempting to force workers back to work taints your image . It makes you look like careless bully greedy capitalists who don’t give a damn concerning the safety of the one’s who ENRICH YOU through serving you with their labour !

    Try being a little more sympathetic . What is that I hear ? Business is not about emotions , it’s about money and being ruthless ?

    And where has that gotten us ? That sort of mentality has created UNIONS ! WORK STOPPAGES , YOUR PAIN & LOSS OF CONTROL !

    Perhaps we should evolve a little and become a little more considerate , “reasonable” ,and compassionate towards one another . However, if YOU choose to continue along this path of “ruthlessness”, you’ll just end up pushing labourers into forming and or joining more unions and removing your “power” in the process .

    Ahhh what a concept !

    In my humble opinion …………..

  3. Noble1

    Quote:

    “A long line of semi-trailer trucks formed outside of CN’s Saskatoon rail yard Tuesday morning when workers refused to let them pass.”

    “A long line of trucks developed, causing some drivers to turn around and leave.”

    DON’T TURN AROUND ! JOIN THEM ! Truckers have been complaining about low rates & wages ,lack of benefits , lack of respect & recognition , and safety hazards due to lack of parking etc etc etc !

    SO JOIN THEM ! A lot of truck drivers have been contemplating a “national” shut down , well here’s your chance ! UNITE with the “Brotherhood” ! And be heard ! If truckers united with the rail workers , that would shake up the whole commercial transportation industry on land .

    Seriously though ,

    The least you can do is take a moment and get out of your truck and shake their hand and show them your support . WE TRUCK DRIVERS are best positioned to understand what it’s like to work long hours under pressure in dangerous circumstances to say the least .

    In my humble opinion …………..

  4. Noble1

    Quote:
    “Singh says he doesn’t support calling back House to legislate CN back to work”

    Singh YOU’RE THE MAN ! He says he would fight the suggestion to legislate CN workers back to work and make it very difficult to pass it , LOL !

    Now that’s SUPPORT ! Nobody should force laborers back to work in unsafe circumstances , NOBODY in their right mind should do such a thing !

    All these businesses complaining about potential losses in profit due to a CN labor strike should put pressure on CN and show support for SAFE work conditions !

    I certainly feel for them , however , one should not ask government to “force” workers back to work in unsafe working conditions for capital gains .

    In my humble opinion …………..

  5. Noble1

    CN UPDATE !

    Quote:
    “CN announces departure of Michael Foster as executive vice-president and chief information and technology officer

    Rob Reilly, CN’s executive vice-president and chief operating officer to assume interim responsibility for Information and Technology function

    MONTREAL, Nov. 19, 2019 (GLOBE NEWSWIRE) — CN (TSX: CNR)(NYSE: CNI) announced that Michael Foster, executive vice-president and chief information and technology officer is leaving the company on November 29, 2019. Michael is leaving for personal reasons, moving back to the United States, to be close to where his family is located and to pursue other career opportunities.

    CN has announced that Rob Reilly, executive vice-president and chief operating officer, will assume interim responsibility for the company’s Information and Technology function, while the company carries out a global search for a chief information and technology officer.”

    BON VOYAGE !

  6. Noble1

    Where’s my vitual freightwaves commenting friend Mike Baudendistel ?

    Since my short call on CN(CNI) December $90 strike Put derivatives are up 33.5% ,and today up 25% ! (wink)

    And the bearish beat goes on , ah la dee da dee dee , Ah la dee da dee da , LOL !

    1. Noble1

      Today’s share price action from my “technical” perspective .

      CNI may have completed a B wave in a potential proregressive expanded flat . This would suggest a potential temporary pop up will follow in wave C . Today’s low from my perspective would be considered to be a “2B bottom ” in wave B intra day on the 15 minute chart time frame undershooting wave A’s commencement on November 14 . Therefore “if” the count is right and a pop upwards does manifest itself , I would certainly not anticipate a potential higher high than the high printed on November 8 .

      Weekly the bias remains bearish until “proven” otherwise , based on a simple bearish harami pattern that manifested over the prior two weeks . This week’s opening gap down would typically suggest the commencement of a potential bearish three inside down pattern , which would confirm the prior pattern all depending on where price closes at the end of the week .

      On the daily time frame we have a “Death Cross” , however , I don’t rely on those expect for noting its bearish indication .

      In conclusion : My preferred count is bearish even though the CN(CNI) share price may experience a potential bounce upwards before resuming downwards .

      In my humble opinion ……………..

      1. Noble1

        Potential temporary pop up assumption before resuming downwards negated .

        Bearish continuation downwards with a gap down and increased volatility occurred which increased the CNI $90 strike December put derivative value tremendously .So despite being wrong on the “potential” temporary pop up price assumption , the bearish bias position continued to pay off more , just quicker than assumed .

        In my humble opinion ………………….

  7. Noble1

    ….
    CN Rail workers have gone on strike . That’s certainly no surprise . I think anyone following the story could have predicted that outcome .

    Quote:
    “CN said it believes a strike can be averted “with the assistance of federal mediators,” after Teamsters declined to submit to binding interest arbitration. ”

    WRONG !

    The Canadian two ministers who went to meet both parties in an attempt to avert the strike failed .

    There’s an updated article titled : Thousands of CN Rail employees head on strike, but talks continue .

    I would be surprised if they came to an agreement on their own . They’ve been in dispute for 7 months .

    For those interested there was a detailed article written explaining facts of what “back to work legislation” is all about in June 2011 titled :
    “FAQ: Back-to-work legislation”

    I don’t see the union budging in this one especially not after what the union president stated as his ultimatum , nor should they in regards to their health & safety demands . I certainly would have played it differently to protect the members from layoffs through a sort of example as I mentioned in a prior comment . And I would accept a capped health plan until the next collective bargaining round .

    The union knows their opponent well in this matter and the union most likely knew about freight demand slowing down . But that was quite a slap in their face when CN decided to announce those 1600 layoffs during their heated debate at the bargaining table . They should have anticipated it .

    If , which I think it most likely will, go into a binding arbitration , the union will win on their safety demands but their heath benefit plan will be capped in the current negotiating contract at least until the next collective bargaining contract date . Accepting a “lifetime” cap would be absurd and asking for one is ludicrous .

    In my humble opinion ……….

    ….

Comments are closed.

Nate Tabak

Nate Tabak is a Toronto-based journalist and producer who covers cybersecurity and cross-border trucking and logistics for FreightWaves. He spent seven years reporting stories in the Balkans and Eastern Europe as a reporter, producer and editor based in Kosovo. He previously worked at newspapers in the San Francisco Bay Area, including the San Jose Mercury News. He graduated from UC Berkeley, where he studied the history of American policing. Contact Nate at [email protected].