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Canada’s CP Rail to resume operations after arbitration contract By Reuters

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© Reuters. SUBMIT IMAGE: The Canadian Pacific railyard is imagined in Port Coquitlam, British Columbia February 15, 2015. REUTERS/Ben Nelms

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By Nathan Gomes and Ann Maria Shibu

(Reuters) – Canadian Pacific (NYSE:) Railway Ltd will resume operations on Tuesday as it consented to settle a labor disagreement with the union representing its conductors and engineers through arbitration, preventing more discomfort to companies fighting supply-chain disturbances.

The railway stated the contract with Teamsters Canada Rail Conference ends the work blockage that started early Sunday when it locked its employees out over a conflict on pensions, pay and advantages.

That triggered require fast settlements over worries it might intensify a scarcity of products triggered by Russia’s intrusion of Ukraine.

Canada is the world’s most significant manufacturer of potash, a crucial component for producing nitrogen-containing fertilizers, followed by Russia and Belarus.

A binding arbitration generally includes a company and a union providing their needs prior to an independent arbitrator, whose choice on agreement terms is last.

“While arbitration is not the preferred method, we were able to negotiate terms and conditions that were in the best interest of our members,” union representative Dave Fulton stated.

Normal operations will continue at CP throughout the arbitration duration, Canada’s Minister of Labour Seamus O’Regan Jr, who moderated the talks, stated.

The contract comes as worldwide supply chain concerns obstruct the rail sector and markets that depend on it to carry whatever from vehicles to coal.

“We are obviously relieved but even a strike of short duration has impacts and is costly,” Chief executive of the Mining association of Canada Pierre Gratton stated.

Canada’s Nutrien (NYSE:) Ltd stated recently it may require to minimize potash production at its mines in the province of Saskatchewan if CP entered into a shutdown that lasted longer than a couple of days.

Nutrien did not react to an ask for talk about Tuesday after CP’s choice to resume operations.

Canada depends greatly on rail to move products and made products to ports. CP’s network encounters much of southern Canada and extends as far south as Kansas City in the United States.

The nation’s last significant train labour disturbance was an eight-day Canadian National Railway (TSX:) Co strike in 2019.

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