Over 3,000 Canadian Pacific Railway Ltd. (TSX:CP)(NYSE:CP) workers could begin a strike at 10 p.m. tonight. This is following a contract rejection by CP rail workers.
The workers compose train operators and signal workers, members of the Teamsters and International Brotherhood of Electrical Workers (IBEW). They were in a position to strike in April before the Liberal government stepped in to force a vote on a “final” contract offer from CP Rail. Train conductors and engineers rejected the offer with a 98% vote, and signalmen by 97%.
CP Rail management has said that it has already put its work stoppage contingency plan into place. Shippers have said that it is more likely than not that there will be a strike starting tonight. The strike threat will likely harm grain farmers with shipments already facing disruptions from the unseasonal weather at the tail end of winter.
CP Rail stock was up 1.35% in early afternoon trading on May 29. It will undoubtedly face volatility in the event of a strike tonight.
The strike could also disrupt commuter rail service in Toronto, Montreal, and Vancouver. Experts believe this will motivate an intervention from the federal government once again. The Ontario transportation agency that runs the GO transit service has warned passengers to expect delays if the strike goes forward. Delayed rush-hour commutes could impact up to 40,000 passengers dependent on the Milton and Barrie lines.
