IBEW ratifies labour contract with CN
Published: January 7, 2008
MONTREAL - CN Railway (TSX:CNR) is looking forward to several years
of labour peace after members of the International Brotherhood of
Electrical Workers union ratified a five-year collective agreement at
the railway's Canadian operations.
The agreement, providing improved wages and benefits, affects about 700
workers who maintain Canadian National Railway's signals and
communication systems in Canada.
Workers will see wage increases of three per cent annually between 2008
and 2010, and four per cent in 2011 and 2012. They will also receive
$1,000 lump-sum bonuses within 30 days of ratification and again on Jan.
The new deal, effective Jan. 1, replaces a four-year contract that
expired Dec. 31.
CN said Monday the contract resulted from good communications and a
commitment by both sides to resolve issues early through regular
"We believe this agreement benefits both CN and the IBEW membership and
reflects the foundation of a solid relationship," stated Kim Madigan, CN
vice-president of labour relations.
Union leader Brian Strong said the new agreement provides five years of
stability for members and helps to improve its members' quality of life.
"We believe that CN's commitment to continue regular meetings and
communications with the union to resolve outstanding issues will
strengthen our relationship," he stated.
The railway is still awaiting ratification of a tentative agreement
achieved last November with about 3,000 members of the United
Steelworkers of America who maintain CN railway infrastructure in
Canada. The USWA deal is the last outstanding collective agreement
needed to guarantee labour peace for the next few years.
Last year, 2,800 conductors and yard workers from the United
Transportation Union were on strike for 15 days. An arbitrator
subsequently imposed a three-year agreement that favoured the railway's
That collective agreement increased wages by three per cent each year of
the contract, which will be in effect until July 22, 2010.
On the Toronto stock market Monday afternoon, Canadian National shares
were up three cents at $46.30.