Canada PM leans on railways and union to settle issues, avert major stoppage
Recasts first paragraph, adds details of talks paragraphs 3 and 8, appeal by business groups in paragraphs 9-10, background in paragraphs 11-12, comment by grain official in paragraphs 13-14
By David Ljunggren and Promit Mukherjee
OTTAWA, Aug 21 (Reuters) -Canadian Prime Minister Justin Trudeau urged on Wednesday the country's two main rail companies and the Teamsters union to settle their differences and avoid a stoppage that could cause billions of dollars worth of economic damage.
Canadian National Railway CNR.TO and Canadian Pacific Kansas City CP.TO have said they will lock out their workers early on Thursday unless new labor deals can be agreed. The two have never shut down at the same time.
Talks between both companies and the union have made little progress, with each side accusing the other of bad faith.
Trudeau told reporters in Quebec that his government was following the matter closely.
"My message is very straightforward. It is in the best interest of both sides to continue doing the hard work at the table to find a negotiated resolution," he said.
"Millions of Canadians, of workers, of farmers, of businesses right across the country, are counting on both sides to do the work and get to a resolution."
Federal Labor Minister Steven MacKinnon, who met CN executives on Tuesday in Montreal, is due to hold talks with CPKC in Calgary on Wednesday.
Canada, the world's second-largest country by territory, relies heavily on rail transport to move a wide range of goods and commodities.
A group of business associations called for Ottawa to prevent a stoppage.
"The federal government must show leadership and act before our trains - and with them, our economy - grind to a halt," they said in a joint appeal to Trudeau.
MacKinnon, speaking to Reuters in Montreal late on Tuesday, said "real issues" remained. The Teamsters say CN and CPKC are seeking concessions that would dilute worker safety, a charge that both companies deny.
MacKinnon has the power to refer the dispute to binding arbitration but the government said it wants the issue to be settled at the negotiating table.
Dean Roberts, a director of the Canola Council of Canada, told reporters that failure to reach a deal would mean "we are sleepwalking into a calamity".
A stoppage would cost grain farmers C$43 million a day starting next week, the council estimates.
Canada Railroads https://reut.rs/3Ar1I8r
Reporting by David Ljunggren; Editing by Rod Nickel
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
