One driver, of about 80 contract truck drivers, demonstrates outside the CP Rail Vaughan yards by slowing vehicles entering and exiting the facility - Date unknown Rick Madonik.

30 July 2012

CP Rail Freight Delayed by Truck Protest at Vaughan Terminal

Toronto Ontario - Truckers slowed freight traffic in and out of CP Rail's main intermodal terminal in Vaughan on Monday, over a contract dispute with the railway's subcontractors.
 
About 80 owner-operators who move CP's rail cars by truck for three companies, General Cartage, Canada Drayage Inc., and Sim-Tran, parked their vehicles and blocked the main entrance on Rutherford Road near Highway 427 early Monday.
 
Big rigs were parked along the side of the road as well in the centre lane.
 
Harjeet Singh say they are protesting a new three-year contract, introduced 9 Jul 2012, that changes how they are paid, effectively cutting their wages by about 30 percent.
 
Singh said this comes after an earlier 30 percent cut in 2009, which they accepted given the tough economic times then.
 
"You live in Toronto. With that kind of cut, you have no choice," he said of the decision to protest. "It makes no sense to own a truck."
 
Once their expenses are factored in such as fuel, maintenance, taxes, and insurance, Singh said they earn less than company drivers, who earn an hourly wage.
 
"It's better to stand here and make no money," Singh said, adding it's not the first time these truckers have taken such action, saying a similar move in 2005 led to a better contract.
 
They are vowing to keep up their picket line around the clock.
 
Ron Kamins, CP's superintendent of operations intermodal, said on a normal day, up to 1,900 trucks move in and out of the terminal.
 
"It's very disruptive," he said. "It's all being delayed."
 
At one point, traffic into the intermodal terminal, which handles containers that can easily go on rails or trucks, was halted but later resumed. Trucks were getting their deliveries out, however at a slow pace, only a truck about every five minutes.
 
David Moore at General Cartage confirmed the protest, but declined to comment further. An official with Canada Drayage Inc. declined to comment. Sim-Tran did not return a call.
 
CP spokesman Ed Greenberg said the railway is closely monitoring the dispute, emphasizing it was between drivers and three companies.
 
"Our Vaughan terminal has remained open. We are looking at what steps are required if this situation continues," he said.
 
It is the latest headache for the Calgary-based railroad, which has faced a bitter proxy fight that led to a management and board shakeup, as well as a nine-day strike in May.
 
Hunter Harrison was appointed president and CEO in late June, replacing Fred Green, who quit on the eve of the 17 May 2012 annual meeting after it became apparent shareholders overwhelmingly supported Pershing Square Capital Management's Bill Ackman, who led a proxy fight.
 
Harrison, who retired from the top job at CN in 2009, has promised to bring more efficiency to CP's operations and deliver higher profits to shareholders.
 
Last week, CP reported lower profits in the second quarter, which ended 30 Jun 2012, blamed on the strike as well as $55 million related to management change and the proxy contest. It earned $103 million in net profit, down $25 million from the same period a year ago.
 
The Vaughan terminal handles most of CP's intermodal traffic in the Toronto area. The company announced earlier this month that it is closing its Obico terminal near Kipling Avenue in November, moving operations to Vaughan, which will mean the elimination of 30 jobs.
 
Vanessa Lu.