29 May 2007
CP Rail May Outsource Major Work During Strike
Canadian Pacific Railway Ltd. may contract out heavy repair work
on its tracks if a strike by maintenance workers lasts into the summer, the railroad's chief executive said on Monday.
Nearly two weeks after 3,200 workers represented by the Teamsters union walked off the job, CP Rail CEO Fred Green said he will not
back down from his position that they must accept a company-wide wage-hike pattern. No talks are scheduled.
The summer is the railroad's period for major repairs of tracks and facilities normally conducted by the members of the Maintenance of
Way Employees Division of Teamsters Canada.
During the dispute, CP Rail has prioritized its work into items that it must do, that it wants to do, and that it would like to do,
Green said in an interview.
"The further in we go, we'll have to refine our priority list," he said. "What we also have the ability to do is, if
people aren't working, we can contract it out."
The railroad is using workers from its management ranks to take care of the day-to-day track and bridge maintenance that
had been the responsibility of about 1,200 of the unionized staff. It deferred expansion activity during the dispute over wages and
work-rule changes.
"At this point, we've got so many people trained that we can actually set up gangs and operate the gangs as well as the regular
maintenance that we're doing," he said.
"It's certainly not influencing our position whatsoever. We are the safest railway in North America for train accidents. We're
going to sustain that point of view... the good news is I've have a lot of alternatives to keep it that way."
The union has said it wants bigger wage increases than the 3 percent agreed on by other bargaining units at CP Rail, arguing its
members' pay has lagged that of the others.
The railroad has said it could offer larger increases, but only if the track workers gave up other work-rule concessions
to generate savings and boost efficiency.
Green said he would not be moved by animosity that contracting out work could fuel among the strikers.
"If people don't want to work and you want to get the work done, you do what you have to do," he said.
Customers, including Canadian Wheat Board, have expressed concern that an extended dispute could affect shipments, but Green said
freight volumes are large and moving on time.
Union president William Brehl said he is not surprised by Green's comments, and suggested they show how far apart the two sides still
are more than two months after the company tabled its last offer.
"They haven't budged off their position on many things since 23 Mar 2007 officially. We're not just talking (wage)
pattern - the wages are a small part of this contract," Brehl said.
"If he's dug in for the long haul, then I guess that's what he's done."
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