Canadian Pacific shuts freight rail service as workers begin strike

23 May 2012 15:45  [Source: ICIS news]

TORONTO (ICIS)--Canadian Pacific (CP) has shut down its freight train operations across Canada after its 4,800 engineers and conductors began work stoppages early Wednesday, the railway carrier said.

The workers withdrew their services early on Wednesday, CP said.

The suspension of CP's freight service will also impact many of the connecting railways with whom the company does business, it said.

CP and labour union Teamsters Canada will continue to meet, with the assistance of a federal government conciliation and mediation service, on Wednesday, the company added. The labour dispute is mainly about work rules and pension plans.

Canada’s chemical industry transports more than two-thirds of its annual shipments on the country’s railway system.

Officials at Canada’s federal transport ministry said the government is concerned the CP work stoppage will have a negative effect on businesses.

Prime Minister Stephen Harper’s government has been quick to end recent strikes – including a strike at Air Canada – with back-to-work legislation.

CP and its competitor, Canadian National, are Canada’s largest rail carriers.

By: Stefan Baumgarten
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