Canadian Pacific Railway Ltd. reached a tentative four-year deal with the Teamsters Canada Rail Conference, ending a strike that began late May 29.
Operations will resume May 31 at 6 a.m. local time across Canada, the Teamsters said in an email statement. The agreement covers about 3,000 conductors and locomotive engineers, the labor union said.
The end of the strike at Canada’s No. 2 railroad defuses a risk of worsening freight congestion in an economy already buffeted by logjams at larger rival Canadian National Railway Co. Customers at Canadian Pacific include Teck Resources Ltd., Canada’s biggest diversified miner, and potash producer K+S AG.
Canadian Pacific advanced 3% to C$247.24 at 2:08 p.m. in Toronto, the biggest intraday gain in five weeks. The Calgary, Alberta-based railroad climbed 4.6% this year through May 29, while the S&P/TSX benchmark index dropped 1.8%.
The company reached a tentative three-year agreement late May 29 with a smaller union, the International Brotherhood of Electrical Workers.
“We believe this is a fair contract that our members can feel good about ratifying. I am personally very satisfied with what we have negotiated,” said Doug Finnson, President of @TeamstersRail. #canlab #CPrail https://t.co/zxNLzBt0qP— Teamsters Canada (@TeamstersCanada) May 30, 2018