CN workers approve deal; go back to work tomorrow

MONTREAL, (March 19, 2004) — Striking CN Rail clerical, customer service, and intermodal yard employees have ratified a new contract that Canadian Auto Workers union accepted late last week.

The vote ends a four-week, nation-wide strike by nearly 5,000 workers — about one third of CN’s total workforce. The employees, which had rejected a prior tentative agreement in February, will go back to work at dawn tomorrow morning.

The company wouldn’t give details on the new contract, but the CAW indicated the offer includes a three per cent wage increase in each year of a three-year agreement, as well as a better pension formula, a back-to-work bonus, and improved shift pay. CN also agreed to return to discipline procedures in place before 2001– a major factor during negotiations.

CN kept operations going during the strike by using managers to fill in. But many shippers publicly complained over delays, problems in obtaining freight cars and containers to load, and in communications with CN on day-to-day matters.

The strike has both hampered and given a boost to trucking. While carriers dependant on intermodal services experienced service disruptions, several other carriers told Today’s Trucking they’ve seen a jump in volumes as frustrated shippers began to shift freight from rail to trucks in order to meet delivery times. There have been indications some of the new-found business could extend into longer contracts, provided carriers are able to provide the extra capacity.


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