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MONTREAL - Canadian National Railways said Friday a federal arbitrator has awarded a 6.8 per cent wage increase over three years to locomotive engineers who participated in a five-day strike late last year.
Andrew Sims decided that 1,700 members of the Teamsters Canada Rail Conference will receive a 1.8 per cent wage increase retroactive to Jan. 1, 2009, 2.4 per cent in 2010 and 2.6 per cent in 2011.
They will also get dental plan improvements as of April 1.
Montreal-based CN (TSX:CNR) and the union sent unresolved wage and benefits issues to binding arbitration after extended talks failed to achieve a settlement in December.
A strike by the engineers was settled Dec. 2 after the railway agreed to roll back an imposed wage increase and monthly mileage cap increases. The agreement was reached just ahead of federal legislation that would have forced the engineers back to work.
CN president Claude Mongeau said the company will work to re-establish an improved relationship with the union, focusing on common interests.
The engineers went on strike after the railway unilaterally tried to impose a contract that included a 1.5 per cent wage increase and increased monthly mileage caps to 6,900 kilometres from 6,100 kilometres.
The union had also proposed undisclosed work rule changes of its own.
The five-day strike followed 14 months of negotiations. The engineers' last contract expired Dec. 31 2008.
The labour dispute did not involve CN employees in the United States, northern Alberta and northern Quebec.
On the Toronto Stock Exchange, CN shares gained 39 cents at $59.70 in morning trading.
