Strike by 48,000 Halts Canada’s Trains

Canadian freight and passenger train service was halted Monday when 48,000 workers struck the country’s two national railroads after federally mediated negotiations failed to settle a dispute over pay and job security.

The workers, representing nine unions, went on strike against the government-owned Canadian National Railways and the privately owned CP Rail. It was the first national railway strike in 14 years.

Thousands of travelers were stranded in cities served by VIA Rail, Canada’s government-owned passenger service, and tens of thousands of commuters were forced to find an alternative way to get to work.

But while the strike’s most dramatic impact may have been on passenger service, its most important effect will be on freight. About 30% of all Canadian goods moves by rail, and the railroads are crucial to the movement of agricultural produce, minerals and timber--three of the most important elements of the Canadian economy.

According to railroad officials, Canadian National and CP will lose at least $16 million per day while the strike lasts. A prolonged work stoppage would be even harder on farmers and natural-resource producers.

With harvest time at hand for wheat and other crops, farmers are particularly worried. Their main advantage in a competitive world market is assured and timely delivery.

“This is another nail in the coffin of the people who work the land,” said Raye-Anne Briscoe, Ontario coordinator of the National Farmers’ Union. “The market is so precarious and the prices so ungodly low these days that we can’t afford to not deliver.”

The mining sector, the largest single user of railroads, was also hoping for a quick end to the strike.

“Almost every mineral in the country is carried by rail,” said Jacques Hudon, spokesman for the Mining Association of Canada.

Layoffs Seen

Hudon and officials of other industries said their members will be forced to lay off thousands of employees unless there is a settlement within a few days. More than 10,000 workers were laid off Monday morning by VIA Rail and the GO commuter line serving Toronto. Neither was struck, but since both lines use the tracks and some crew members of Canadian National and CP, they were unable to operate.

Under Canadian law, Parliament can end a strike by enacting emergency legislation ordering the workers back to their jobs and negotiators back into talks, and it appeared Monday that the federal government was preparing to take such a step.

Transportation Minister John Crosbie said in Ottawa that he was studying several options, and added, “It’s quite obvious we can’t leave the country paralyzed.”

Labor Minister Pierre Cadieux said he is ordering both sides to send negotiators to Ottawa to resume the talks that broke down late Sunday.

“This is the final attempt at mediation,” Cadieux said. “If it fails, the government will intervene.”

He did not say how long he would give the negotiators, but other government officials said legislation probably will be introduced by the end of the week if no settlement is in sight.

Among the sticking points in the negotiations is a union demand for a 4% wage increase this year and 4% more in 1988. The companies say they will pay no more than a total of 4% for the two years. The average railway worker is now paid about $11.50 an hour.

A government conciliator has recommended 3% for each year, and sources on both sides say that this figure could be a reasonable compromise.

According to these sources, the major problem is a dispute over job security. The unions are demanding retention of a clause guaranteeing that no worker with eight years’ service or more can be laid off because of technological, organizational or operational changes.

Meanwhile, travelers were looking for alternate forms of transportation. VIA, which normally accommodates about 20,000 passengers a day, offered to get people to their destinations by air or bus.

Far more difficult was the problem of commuters. More than 30,000 people normally use the Toronto area’s GO rail system every day. Because there is no alternative bus system, most of them tried to get to work by car Monday, choking the city’s already jammed highways. As a result, the morning rush hour lasted to nearly 11 a.m.