CN strike enters third day; Railway says disruption ‘illegal’

MONTREAL — Just two days in, the labor battle between CN and 2,800 conductors and yard-service employees has turned bitter, with the railroad already threatening to sue union leaders over what it says is an “illegal” strike.

Canadian United Transportation Union leaders commanded the workers to walk of the job at midnight on Saturday after negotiations between the union and the company broke off.

CN continues to offer freight service across its Canadian network with management personnel filling striking workers’ jobs. So far, the company reports that things are running relatively “smooth.”

According to CN, the UTU’s final offer was wage increases of 4.5 percent, 4.5 percent, and 4 percent over three years. That’s 40 percent higher than the increases negotiated in recent collective agreements for a comparable three-year period, claims the railway. The union is also seeking an extension on lunch breaks to 40 minutes.

The crucial Vancouver Port was reportedly
not affected by the CN strike — for now.

While relations between the union and company are obviously tense, it seems that an internal dispute within the union is also playing a key role in the conflict.

According to CN, the UTU’s U.S.-based international president has not authorized the strike and general chairpersons have declined to pay employees strike pay — rendering, CN claims, the disruption illegal.

The company filed a complaint with the Canada Industrial Relations Board on Saturday, claiming the union’s pressure tactic is against the law.

“The UTU International, which is the certified bargaining agent for the employees, has not authorized this strike,” said CN spokesperson Mark Hallman.

The union’s chief negotiator, Rex Beatty, admitted to Canadian Press that there is a difference of opinion between Canadian union leaders and the U.S. parent, but that doesn’t mean the strike isn’t legal. “…The constitution of the union cannot supersede the law,” he said.

E. Hunter Harrison, president and CEO of CN, said in a press release that the union’s demands don’t make economic sense. “A settlement must be economically sustainable and maintain the company’s competitiveness in the transportation marketplace.”

CN says the average 2006 annual wage increase in major collective agreements in the private sector was 2.1 percent, which is the same as the transportation industry average. Last year, notes the railway, the average annual UTU employee made $75,000, with a quarter of members making more than $90,000.

CN and the UTU are maintaining normal commuter rail operations on CN lines in Toronto and Montreal. Also excluded from strike action are UTU members employed on CN’s Northern Quebec Internal Short Line, Algoma Central Railway in northern Ontario, and Mackenzie Northern Railway in northern Alberta.

As of Sunday evening, rail-bound freight at the Port of Vancouver was moving normally, although some workers did set up demonstrations just outside the main port’s gates over the weekend.