Canadian National Railway Says Shipments Uninterrupted After Union Walkout

Date: Tuesday, June 21, 2022
Source: Wall Street Journal

Canadian National Railway Co. said its shipments throughout Canada and the U.S. haven’t been interrupted after its Canadian signal and communication workers walked off the job Saturday following months of contract negotiations.

The union is seeking improved benefits and wages. Robert Reilly, CN’s chief operating officer told employees in a letter Monday that the railway had offered the union, the International Brotherhood of Electrical Workers, a 10% wage increase and other benefits in a proposed three-year contract.

A spokesman for the union wasn’t immediately available.

The railway is a major shipper of agricultural, manufactured, petroleum, chemical, mineral and forest products across Canada and through central U.S. states to the Gulf of Mexico.

CN ranks among the top five Class 1 North American railroads, which are facing increased pressure from U.S. federal regulators and major businesses to resolve delays of such crucial supplies as fertilizers, livestock and ethanol.

Rail officials have blamed the slowdown on labor shortages and a scarcity of railcars.

The disruptions have increased transportation costs and raised concerns about increased food prices for consumers at a time global food security has been threatened by the war in Ukraine, a major supplier of agricultural goods.

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