CP Rail strikes shuts down freight transport
May 23, 2012 - Canadian Pacific railway Ltd. was shut down earlier this week after a new labour deal was not reached with its engineers, conductors and freight traffic controllers by the strike deadline.
May 23, 2012 – Canadian Pacific railway Ltd. was shut down earlier this
week after a new labour deal was not reached with its engineers,
conductors and freight traffic controllers by the strike deadline.
According to an article in the Financial Post, the strike is expected to impact freight service at CP, but also VIA Rail. However, Federal Labour Minister Lisa Raitt said that she is prepared to table a back-to-work bill in the event a settlement cannot be reached. But with Parliament off this week, the earliest it could be put into action would be early next week.
According to Steve Hansen, an industry analyst with Raymond James, over 75 percent of CP's revenues will be at risk from the strike.
“The economic impact of a prolonged operational shutdown would certainly
be far-reaching. Transport of grain, coal, metals, and potash would be
hit hard, in our view,” he said. “Given the potential economic impact,
and this government’s past track record (i.e. Air Canada’s recent labour
dispute), we suspect back-to-work legislation to be passed in short
order, with a binding arbitration process also likely.”
For more on the potential impact of the CP strike and what it could mean for Canadian freight and transport industries, please see the Financial Post.