2 February 2011

Railfax CP and CAW Bargaining Update

Montreal Quebec
 
Dear Brothers and Sisters,
 
The bargaining committee for Local 101, headed by President Tom Murphy and National Representative Brian Stevens, recommenced discussions with CP Rail on Thursday, 27 Jan 2011 at 4:00 p.m. EST. The bargaining committee will remain in Montreal working on the numerous issues until the deadline of Tuesday, 8 Feb 2011 00:01 hours EST. This will be one of the most difficult sets of negotiations that we have seen in years with CP Rail.
 
The attitude of the corporation has changed and the relationship is strained. This corporation has continued with their concessions and are demanding that the workers take a zero increase in the second year. The basis for this concession is because this is a pattern set with the other unions.
 
There is absolutely no legitimacy to this argument, as this Calgary based company announced Wednesday, 26 Jan 2011, that its net income for the fourth quarter, ending 31 Dec 2010 was $186 million, up 27% from a year ago. Revenue rose to $1.29 billion from $1.14 billion. Full years profits for 2010 grew to $650.7 million from $550 million in 2009. These increases were all during one of the worst economic downturns in this country's history.
 
The bargaining committee will continue to make these arguments, underscoring that productivity has risen and the operating ratios improved significantly in the fourth quarter of 2010. This means that workers were working harder and have an absolute right to share in CP Rail's success.
 
The corporation has announced the closure of the Ogden shop, whereby 65% of the work will be contracted out. The bargaining committee is demanding, not only should the affected workers be treated fairly and with respect, but that this proposed closure affects the total membership in Local 101. There must be respect for our members by the company for this difficult decision.
 
In the next few days the bargaining committee will be concentrating on the proposed Ogden closure, along with numerous other issues including grievances, skilled trade issues, and quality of work life. These items are categorized as non-economics and these issues albeit not all inclusive, must be dealt with by the corporation.
 
Economic Offer
 
We do not expect to see any type of economic offer in the near future, as the other issues that affect our workers on the shop floor from day to day must be addressed and resolved.
 
Company Concessions
 
The corporation has a whole host of demands against the bargaining committee and our members in the areas of benefits including:  transfer of benefits, rule and road work, pre-tripping and contracting out, seniority and rest days, mechanics/DSA work, introduction of a part-time casual workforce, and representation (where they are attempting to eliminate our National Health and Safety Coordinator).
 
Our members should appreciate the challenges before the bargaining committee, as they not only have to beat back the concessions, we are obligated to our members to make progress.
 
Progress Rail
 
The bargaining committee is also attempting to ensure that these workers are not left behind as part of any overall settlement. The committee has been in negotiations with Progress Rail and CP Rail in the last few days. One of the key issues is the pension plan (RSP) that must be resolved by making the workers whole on what they are owed by this corporation. A significant amount of time has been spent on this issue and the bargaining committee is determined that the corporation must address and resolve this issue.