(Montreal) Canadian Pacific Railway Company (TSX: CP) (NYSE: CP) will lock out its employees before its unionized employees carry out their strike threat.
Posted at 8:16 p.m.
Federal Labor Minister Seamus O’Regan Jr. confirmed this Wednesday evening in a press release indicating that labor negotiations between Canadian Pacific and the Teamsters Canada Rail Conference were at an impasse.
The mediation process with the help of the Federal Mediation and Conciliation Service (FMCS) therefore did not produce the expected results during the meetings on Wednesday and last Friday.
“Canadian Pacific and the Teamsters Canada Rail Conference are negotiating the renewal of their collective agreement and have not yet been able to reach an agreement. Today, the employer announced its intention to impose an employer’s strike (lock-out) on employees as of March 20,” the Minister’s press release stated.
The company also confirmed in an English press release on Wednesday evening that it had given 72 hours’ notice to the union.
“Transportation Minister Omar Alghabra and I understand the impact of a possible work stoppage and we are monitoring the situation closely,” said Minister O’Regan.
“Seeing the two parties continue their negotiations reassures us. We have communicated directly with the parties and encouraged them to work together to resolve their differences and reach an agreement as quickly as possible,” he added.
On March 4, the Teamsters Canada Rail Conference announced that its members at Canadian Pacific (CP) had come out strongly in favor of a strike, if this pressure tactic was deemed necessary.
More than 3000 members voted in favor of the strike, at 96.7%, to resort to this ultimate means of pressure.
These employees are Canadian Pacific Railway locomotive engineers, conductors, trainmen and yardmen.
The main issues in dispute relate to wages, benefits and the pension plan, according to the union.
The Teamsters union had floated the possibility of a strike at midnight on March 16, but its members will finally find themselves locked out on Sunday, if no agreement between the parties is reached by then.