CP Rail to resume operations after arbitration agreement

Agreement with Teamsters Canada Rail Conference ends shutdown that began early Sunday

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Canadian Pacific Railway Ltd. will resume operations on Tuesday after agreeing to arbitration with its conductors and engineers, easing concerns about further disruptions to industries across the country battling supply chain disruptions.

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CP said the agreement with the Teamsters Canada Rail Conference ends the shutdown that began early Sunday, adding that it will immediately begin work to resume normal train operations across the country.

The company has halted operations and locked out its workers over a dispute over pensions, wages and benefits, sparking calls for quick negotiations over fears of worsening a shortage of products. base caused by the Russian invasion of Ukraine.

Canada is the world’s largest producer of potash, a key input needed to produce nitrogen-containing fertilizers, followed by Russia and Belarus.

“Although arbitration is not the preferred method, we were able to negotiate terms and conditions that were in the best interests of our members,” union spokesman Dave Fulton said in a statement.

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Normal operations will continue at CP during the arbitration period, Canadian Labor Minister Seamus O’Regan Jr, who brokered the talks, said in a statement.

The deal comes as global supply chain issues have hit the rail sector and the industries that rely on it to transport everything from cars to coal.

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The world’s largest fertilizer producer, Canada’s Nutrien Ltd, said last week it may have to cut potash production at its mines in the province of Saskatchewan if CP were to shut down for more than A few days.

Canada, the second largest country after Russia, relies heavily on rail to move goods and manufactured goods to ports. CP’s network crosses much of southern Canada and extends as far south as Kansas City in the United States.

The last major railway labor disruption in the country was an eight-day strike by Canadian National Railway Company in 2019.

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