March 28, 2014 / 9:50 PM / 5 years ago

CN, union agree to arbitration if talks fail, ruling out strike

Claude Mongeau, President and CEO of CN Rail, poses outside the convention hall before speaking to shareholders at the CN annual general meeting in Edmonton April 23, 2013. REUTERS/Dan Riedlhuber

TORONTO (Reuters) - The union representing Canadian National Railway Co’s conductors, yard workers, and traffic coordinators agreed on Friday to go to binding arbitration should contract talks fail, ruling out a potential strike at Canada’s largest rail operator.

Both CN and the Teamsters union, which represents some 3,000 workers, confirmed the conditions for the talks by email. CN spokesman Mark Hallman said he expects the process towards a new collective agreement to conclude by mid-June.

Union members have twice voted down tentative agreements reached with the Montreal-based railway, the last time by a narrow vote of 891 to 852.

CN said last week it was prepared to meet one last time with the union, but only if the union agreed to go to arbitration should talks fail.

Members have rejected the last two tentative agreements because they do not trust the company to respect provisions on rest under the existing contract, union members have said.

The dispute comes as CN works to comply with a government order to move 5,500 grain cars a week to address a massive bottleneck. The backlog is due to a record-shattering harvest in 2013, exacerbated by transport disruptions due to an extremely cold winter.

Reporting by Cameron French and Solarina Ho; Editing by Jeffrey Hodgson and David Gregorio

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