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COMPETITION WATCH: CN announces first renewal of hourly-rate UTU labor agreement on former WC

CHICAGO, Ill -- CN has confirmed that United Transportation Union (UTU) members on its former Wisconsin Central (W...


CHICAGO, Ill — CN has confirmed that United Transportation Union (UTU) members on its former Wisconsin Central (WC) territory have ratified a new collective labor agreement providing general wage increases through mid-2011.

The ratification marks the first renewal of the hourly rate agreement on the former WC, which is located in the Upper U.S. Midwest. CN acquired the Wisconsin Central Transportation Corp. in October 2001.

In contrast with traditional mileage- and rule-based wage systems for engine crews dating back to the steam locomotive era, WC UTU members are paid hourly wages and enjoy job security in exchange for greater work rule flexibility for the company. Most of CN’s train and engine employees in the United States are covered by such agreements.

Effective May 28, 2007, the new labor pact will apply to about 300 conductors, with pay increases retroactive to Aug. 1, 2004. It will also move the conductors to the UTU’s national health and welfare plan.


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