TWO YEARS AGO, In April 1956 the Firemen's Union demanded wage increases and other benefits involving substantial increased costs.
 
AT THE SAME TIME Canadian Pacific proposed that, as firemen were not necessary, they should no longer be carried on diesel locomotives in freight and yard service.
 
CANADIAN PACIFIC also proposed dropping both arbitrary wage payments for which no serice was rendered and differential wage rates in mountain territory.
 
IN DECEMBER 1956 a Federal Board of Concillation recommended substntial wage increases and other benefits. At the same time, it found that firemen were not required on diesel locomotives in freight and yard service and made provision for protection of their employment. It also found that payment of arbitraries and mountain differentials should be modified.
 
CANADIAN PACIFIC accepted the Concillation Board's report.
 
THE FIREMEN'S UNION rejected the report and called a strike on January 2, 1957.
 
THE STRIKE WAS ENDED on January 11, 1957 on the following basis:

1. Canadian Pacific agreed to pay the substantial wage increases retroactive to April 1 of the previous year and other benefits recommended by the Conciliation Board.
2. The Union and Canadian Pacific agreed to refer the DIESEL ISSUE as well as payment of arbitraries and mountain differential to a ROYAL COMMISSION.
3. The Union and Canadian Pacific agreed to negotiate these issues in the light of and immediately following the publication of the ROYAL COMMISION'S Report.

THE KELLOCK ROYAL COMMISSION of three senior judges devoted ten months to hearing 119 witnesses, and at the request of the Firemen's Union, made on-the-ground investigations across Canada, and also made observations on four major European railway systems. It was the most extensive and thorough investigation in the history of labour relations in Canada.
 
IN ITS UNANIMOUS REPORT published February 4, 1958 the ROYAL COMMISSION found that:

1. Firemen are not required on diesel locomotives in freight and yard service on Canadian Pacific either for safety or any other reason.
2. The proposal of Canadian Pacific for protecting firemen from loss of employment and seniority is fair and generous.
3. Arbitraries have become unrealistic and should be dropped and payment made on the basis of service rendered.
4. Mountain differential payments should be dropped and replaced by valley differential.

CANADIAN PACIFIC accepted the report of the KELLOK ROYAL COMMISSION as it had undertaken to do when the Commission was appointed.
 
THE UNION rejected the report, stating that nothing in it was acceptable to them. They did so knowing that not one fireman would suffer loss of railway employment who was hired before the proposal to discontinue firemen on freight and yard diesels was made in April, 1956. All across Canada there are less than 100 firemen hired after that date and now working who face possible lay-off.
 
ALL EFFORTS of Canadian Pacific to settle the dispute through negotiations with the Firemen's Union have failed.
 
FOR TWO YEARS firemen have enjoyed substantial wage increases. During these two years action on the diesel issue has been postponed while the Union had every contention it could advance investigated by two enquiries.
 
CANADIAN PACIFIC, to fulfill this duty, has given notice to the Firemen's Union that the findings of the KELLOCK ROYAL COMMISSION will take effect on May 11, 1958.
 
THIS ACTION is in accordance with Federal labour law.
 
CANADIAN PACIFIC RAILWAY COMPANY