Raitt urged Canadian Pacific Railway and its striking workers to keep negotiating but said she's being prudent by putting the legislation on the order paper in the House of Commons. The announcement came 10 hours after the workers went on strike.
"We want to make sure that they're doing the best that they can, but they understand as well that if they cannot conclude their deal, we will have the ability to intervene," Raitt told reporters in Ottawa.
"We want to make sure that the effect on the economy is being brought to people's attention and that we're keeping it in mind as it proceeds."
Raitt says the parties are still at the table and are getting closer to agreement. She says the government estimates a strike could cost $540 million a week.
Up until she made the announcement, it had seemed as if Raitt wouldn't move right away to back-to-work legislation.
'Nothing but good intentions'
Asked by CBC Radio on Tuesday evening whether she had legislation ready to go, Raitt said she had "nothing but good intentions at the table" to help the two sides get a deal.
"Talking about legislation really isn't going to help the matter," Raitt said.
The Teamsters Canada Rail Conference (TCRC) told CBC News earlier Wednesday that they were pleased with Raitt's approach and would be surprised if she moved to back-to-work legislation any time soon.
The House of Commons isn't sitting this week, with MPs working in their ridings, so the legislation isn't likely to start moving through Parliament until next week. Raitt wouldn't say whether the government is considering calling MPs back to the House for an emergency sitting.
Asked whether Canadian Pacific asked for the legislation, Raitt said no.
"I think there's equal incentive for both the company and the members of the Teamsters to do a deal. They both care very much for their company and want to do what's best for them," she said.
Last year, the government brought in back-to-work legislation for both Air Canada and Canada Post disputes — in the case of Canada Post, it ended a lockout.
In June 2011, the NDP forced the House to sit continuously for three days as the party fought the Canada Post legislation.
Workers started strike Wednesday
The workers went on strike early Wednesday morning after last-minute negotiations before the midnight deadline failed, the Teamsters union says.
Freight service has been suspended across the country.
"We have made every reasonable effort to get a settlement, said Doug Finnson, vice-president of the TCRC. "Every union member knows how important the outstanding issues are. We will not walk away from the negotiation table."
Raitt's office released a statement Wednesday morning saying the federal government is concerned the work stoppage will have a negative effect on Canadian businesses.
"The best solution is always the one that the parties reach themselves," Raitt said. "I urge the parties to resume negotiations and work diligently to reach negotiated agreements or agree to submit to a binding process to settle their disputes."
Officials with Canadian Pacific Railway and the union met with Raitt on Tuesday morning, where they agreed that commuter trains in Montreal, Vancouver and Toronto will keep running in the event of a strike. That means 65,000 Canadians were able to get to work as usual Wednesday morning, Raitt said.
Expected to stop shipments
The strike is expected to halt shipments of grain, fertilizer, coal and other goods CP moves along nearly 24,000 kilometres of track in Canada and the U.S.
Two intercity Via Rail routes in Ontario that use CP infrastructure will be affected by the strike. Via Rail said on Wednesday that passengers travelling between Ottawa and Toronto will have to take buses between Ottawa and Brockville, with train service still available on the journey between Brockville and Toronto.
The Toronto to Sarnia route is also affected, with four trains cancelled — numbers 85, 86, 88 and 89 — and buses provided as an alternative. Trains from White River to Sudbury have also been cancelled numbers —185 and 186 — with buses providing alternate transportation.
The TCRC represents 4,800 engineers, conductors and rail traffic controllers in Canada. The union and CP have been negotiating since October in an attempt to renew the collective agreements that expired Jan. 1, 2012.
Finnson says the major points of contention for the union are pensions, some work rules and fatigue management.
Management shakeup at CP
The strike comes at a time of major changes at Canada's second-biggest railway. A bruising months-long proxy fight with the railway's biggest shareholder culminated last week in Fred Green's exit as CEO.
New York hedge fund Pershing Square Capital Management argued the railway was lagging under Green's leadership and that a change was necessary.
Green and five other board members stepped down hours before the company's annual general meeting last Thursday after shareholders voted overwhelmingly for director nominees on Pershing's slate.
The Teamsters' Finnson said the union has not yet met with Green's interim replacement, Stephen Tobias. He said the management shakeup has not affected the bargaining process.
Original Article
Source: CBC
Author: Laura Pyton
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