Dive Brief:
- Canadian Pacific (CP) and Teamsters Canada Rail Conference (TCRC) have reached a tentative agreement, ending a strike that began Tuesday night. Full operations will resume on CP at 6 a.m. Thursday local time across Canada.
- TCRC President Doug Finnson called the result of the negotiations "a fair contract that our members can feel good about ratifying."
- Keith Creel, president and CEO of CP, called the deal "a significant step toward a renewed positive relationship" with the labor union.
Dive Insight:
The CP strike was relatively fleeting, lasting only 36 hours. The agreement will now go through a ratification process over the coming months.
In a tweet, Finnson said he was "personally very satisfied" with the new contract, displaying a marked shift in tone. Just hours prior, TCRC called CP "an abusive employer."
Neither CP nor TCRC disclosed any further details about the agreement.
“We believe this is a fair contract that our members can feel good about ratifying. I am personally very satisfied with what we have negotiated,” said Doug Finnson, President of @TeamstersRail. #canlab #CPrail https://t.co/zxNLzBt0qP
— Teamsters Canada (@TeamstersCanada) May 30, 2018
Although the strike left rail cars idle, goods will start moving again in the morning, minimizing too many disruptions or delays to shipments and intermodal freight transfers.
In this particular situation, the railway and labor union were able to work out a deal quickly and without outside intervention.
At times, however, federal authorities get involved in labor disputes to ensure shipments stay on track and economic damage is minimal. This was the case with the West Coast port strikes in 2014 and 2015.
Canadian Prime Minister Justin Trudeau appeared reluctant to intervene in the negotiations. He told Bloomberg he believes "in working things out at the bargaining table."
