12 June 2007
CP Rail Says Track Workers' Bonus is Cost Neutral
The bonus slated for Canadian Pacific Railway Ltd. track workers
under a tentative contract deal doesn't mark an additional company payment, a spokesman said on Tuesday.
The 3,200 workers will get lump sum payments of 1 percent each year in the three-year deal being voted on by employees,
but a CP spokesman said it is from funds already paid to an employment security fund.
"Essentially it's cost neutral to us," said Mark Seland, adding the company still believes the strike by workers who repair
track, bridges, and other structures on CP's Canadian lines could have been avoided.
Last week's deal with the Teamsters Union, which ended a three-week strike, also called for wage increases of 3 percent, 4
percent, and 3 percent, which was what the company had offered before the walkout.
Wages were a public flashpoint in the dispute, with CP saying it would hold all its unions' 3 percent annual wage increases unless
changes were implemented to boost productivity.
William Brehl, president of the Teamsters' Canadian track workers unit, said the bonus payment was not a case of the union paying
itself since the money was already coming from the company.
The fund redirection is included in an appendix to the contract deal, and calls for CP to resume payments to the employment fund when
this contract expires at the end of 2009.
The union said Canadian Pacific dropped pre-strike demands for changes in seniority districts and for increased expense
payments, but the sides agreed to a co-payment deal on health insurance.
Results of the ratification vote are expected by mid-July.
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