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Winnipeg Free Press - PRINT EDITION

CP Rail strike sparks layoffs

Feds threaten to prepare back-to-work legislation

By: Lauren Krugel

Posted: 05/24/2012 1:00 AM | Comments: 0

JOE BRYKSA / WINNIPEG FREE PRESS Canadian Pacific workers walk the picket line on McPhillips Street in Winnipeg Wednesday.

CALGARY -- A strike by 4,800 Canadian Pacific Railway workers means the services of thousands of other employees won't be needed, a spokesman for the railway said Wednesday as the federal labour minister threatened to force an end to the day-old stoppage.

"Unfortunately, with this unnecessary strike by the Teamsters, more than 2,000 other unionized CP employees will not be required and are being laid off," said CP's Ed Greenberg.

"We expect this to grow by another 1,400 employees as their work, related to the operations of the railroad, is no longer required."

Greenberg said the layoffs could affect those who work in the yard, engineering and mechanical areas -- essentially anyone who isn't needed when trains aren't running.

Earlier in Ottawa, Labour Minister Lisa Raitt said the government is prepared to introduce back-to-work legislation if CP and the Teamsters Canada Rail Conference can't reach a deal.

"We want to create the atmosphere where they can do a deal on their own," she told reporters.

"But they have to be aware of the fact that the Canadian government will step in on the basis of the national economy and the greater public interest at some point."

A prolonged strike would cost the Canadian economy an estimated $540 million a week, Raitt said, calling that figure "conservative."

She said some freight might be able to move by other means -- by truck or on rival railroad Canadian National Railway Co.'s network.

"But at some point in time there will be a grave economic effect and we're monitoring for that now," she said.

Tens of thousands of carloads a day of grain, coal, cars, lumber and other products aren't moving because of the walkout, Greenberg said.

"This will have dramatic impacts on our customers' business and Canada's economy," he said.

"If the Teamsters stay on strike for any length of time, we are told that significant collateral impact will occur to our customers with plant shutdowns or operational curtailment. This will take the economic impact and job loss far beyond the minister's estimates."

NDP labour critic Alexandre Boulerice said he's concerned the threat of back-to-work legislation will help CP at the bargaining table.

"Once again the Conservatives are taking only one side and by threatening the union and the workers with back-to-work legislation, it removes a lot of pressure from the employer," he said.

-- The Canadian Press

Republished from the Winnipeg Free Press print edition May 24, 2012 A12

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