Canadian Pacific to cut 500 maintenance workers

Mark Milam

29-Jun-2016

Neale Clark / robertharding/REX Shutterstock Canadian Pacific freight train locomotive at Banff station, Banff National Park, Canadian Rockies, Alberta, Canada 2013
Rail officials say Thursday’s job cuts are temporary and will not impact safety or leave the company less prepared. (Neale Clark / robertharding/REX Shutterstock)

HOUSTON (ICIS)–Due to lower car volumes and weaker demand in what it views as a lacklustre North American market, Canadian Pacific Railway (CP) confirmed on Wednesday that it will lay off 500 maintenance workers.

Those employees, whose jobs end on 30 June, were notified earlier this month of the decision. At the end of 2015, CP listed a workforce of 13,858 total employees.

CP officials said the layoffs are temporary, tied to poor market conditions impacting the railroad industry as a whole.

Q2 revenue has declined 12% in part because of lower than anticipated volumes in bulk commodities like grain and potash, the railway said.

Officials added that the company has been working closely with union officials and others to follow the collective employment agreement and to ensure there are no additional public safety risks.

While cutting maintenance workers has raised some concern over safety and potential for derailments, CP said that the job cuts will not leave the railroad less prepared.

“CP increased spending on infrastructure improvements by 32% from 2012 through 2015, installing new track, new ties, new ballast and doing other work to ensure a safer railroad. CP has reinvested an average of 21% of its annual revenues into the business during that period, one of the highest reinvestment rates in the industry,” the company said.

“The frequency of both visual inspections and ultrasonic rail flaw detection remains unchanged,” the company added. “… CP carefully considered the changes that were being made and concluded that since they posed no risk to employees, the public, property or the environment, a risk assessment was not required.”

The railroad said as market conditions improve it will look to bring back the laid off employees.

The Calgary-based company cut 1,400 jobs in April. At the time, company officials said the vast majority of reductions would be through attrition.

INSET IMAGE: (Canadian Press/REX Shutterstock)

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