Tuesday, May 29, 2012

Canada to force striking rail workers back to jobs

(AP) ? Canada plans to introduce legislation to force striking Canadian Pacific Railway workers back to their jobs after talks stalled over the weekend, the country's labor minister said Monday, saying the freight service shutdown at Canada's second largest railway is hurting the economy.

Locomotive engineers and conductors went on strike Wednesday, shutting down freight service along nearly 14,900 miles (24,000 kilometers) of track in Canada and the U.S.

Labor Minister Lisa Raitt on Monday called Canadian Pacific Railway the backbone of the country's economy, and she has said she would force strikers back to work if necessary.

The railway and the union said talks broke off Sunday with little hope of resumption.

The back-to-work legislation would be introduced Monday, and the strikers could be ordered to work this week.

Raitt noted that Canadian Pacific Railway moves $50 billion worth of freight each year, including more than half of Canada's potash, wheat and coal. The Mining Association of Canada has expressed "grave concern" about the strike's impact.

Prime Minister Stephen Harper's Conservative government has cited potential economic damage in the past for preventing or ending strikes at Air Canada and Canada Post.

Opposition parties said the government is undermining the right to collective bargaining.

Major points of contention in the latest strike are pensions, certain work rules and fatigue management.

The strike has come amid big changes at the railway. Earlier this month, Canadian Pacific appointed an interim chief executive after chief executive Fred Green announced his departure, ending a monthslong battle that pitted New York activist investor Bill Ackman against a board of directors stocked with Canadian business titans.

The railroad also elected a new board of 16 directors, including seven backed by Ackman, whose Pershing Square Capital Management fund is Canadian Pacific's largest shareholder with about 14 percent of the company's stock.

Associated Press

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