Canadian Pacific and Teamsters union reach contract deal
Reuters: Jun 6, 2007
TORONTO - Canadian Pacific Railway (CP.TO: Quote) and the union representing 3,200 maintenance workers said on Wednesday they reached a tentative three-year deal which could end a national strike that began in mid-May.
The two sides said workers could be back to work "over the next few days."
A memorandum of settlement will be sent to the union membership for ratification over the next few days and details of the agreement will be released following ratification, the two sides said in a statement.
The deal follows a strike that began on May 15 which has caused delays at major transportation terminals across the country.
Talks aimed at a new contract broke off in late April and union members started the strike last month.
The union had said it wanted bigger wage increases than the 3 percent agreed on by other units at CP Rail, arguing its members' pay has lagged behind that of the others.
But the railroad said it could offer the bigger increases only if the track workers gave up other concessions to generate savings and improve efficiency.
CP shares were down C$1.17 at C$76.33 on the Toronto Stock Exchange in early activity on Wednesday.