Breaking News
0

CP Rail talks stagnate as strike deadline looms: union

Stock MarketsApr 20, 2018 02:33PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: A CP Rail train rolls across the prairies into the rocky mountains of near Canmore.

By Allison Lampert and Julie Gordon

MONTREAL/VANCOUVER (Reuters) - Canada's biggest rail union said no progress had been made in negotiations on Friday with Canadian Pacific Railway Ltd (TO:CP) to reach a deal before a Saturday deadline as worries about a potential strike weighed on the country's crude oil prices.

If the two sides fail to reach a deal, a strike that would begin on April 21 would be the union's third in six years. Management and union workers are grappling over issues such as schedules to reduce fatigue management, the union said. This would add hurdles for shipments of potash, crude oil and grains as demand soars for already congested rail service at CP and its larger rival Canadian National Railway (TO:CNR).

Chris Monette, spokesman for the union, Teamsters Canada Rail Conference, said "negotiations have not progressed at all." The union represents about 3,000 CP locomotive engineers and conductors. A second union representing about 360 railroad rail signals staff at Canada's second-largest railroad also plans to walk off the job.

A CP spokesman was not immediately available for comment but the company said on April 18 it would continue to bargain in good faith and remained committed to achieving a win-win solution.

Some analysts said Canada's federal government would likely legislate strikers back to work.

"I believe that if a strike were to happen, it will probably be short lived because so many commercial interests will be affected," wrote Edward Jones analyst Dan Sherman by email.

Western Canada Select heavy blend crude for May delivery in Hardisty, Alberta, settled at $21 below the West Texas Intermediate on Thursday in thin trade, well above Monday's settle of $14.40.

Canadian oil prices trade at a discount to the U.S. benchmark and the heavy discount is expected to persist for the foreseeable future, as rising production in Alberta's oil sands outstrips shipping capacity, with the rail uncertainty adding pressure to an industry already hurt by pipeline constraints.

"It is another factor that illustrates the fragility of our export capacity at a time we are still working through supply overhang," said Tim Pickering, president of Auspice Capital.

On Thursday, Canadian Labour Minister Patty Hajdu said she expected all parties to stay at the table until a deal was reached.

Wade Sobkowich, executive director of the Western Grain Elevator Association, said the grain sector already has a backlog of 6,058 railcar orders for CP to fill.

"Even a stoppage of two or three days will create a loss in capacity that cannot be afforded," he said by email.

CP Rail talks stagnate as strike deadline looms: union
 

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email