Area Mills To Feel Effects Of CN Strike For Some Time

Sunday, February 25, 2007 08:21 AM

Despite a tentative deal to end the strike at CN rail, it's expected to be some time before everything returns to normal for the railway's customers.

Speaking about the situation during a conference call to release its year-end figures on Friday, Canfor's President Jim Shepherd said, with only a finite number of rail cars in the system, it's going to take some time to deal with the backlog created by the job action.

With CN management personnel trying to maintain freight service during the 14-day strike, Canfor was down to between 25- and 40-percent of its usual supply of rail cars for outbound shipments. And Shepherd said on Friday that an impact was starting to be felt on the supply side, with delays in getting petroleum products and chemicals to its mills.

Canfor's General Manager of Supply Chain, Ian McIvor, said, in terms of inventory, the company will be dealing with the effects of the job action for many months to come.

"We’ve obviously built a bit of inventory at a our mills which will take us some time to clear that off," said McIvor, "It will be two to three months after the rail strike ends before we can clear that inventory back through the system."

As for financial impacts, President Jim Shepherd said, "It's too early to say."

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Posted on Sunday, February 25, 2007 08:21 AM in News by 250 News

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Comments

Posted by: Don Mackenzie on February 25 2007 10:57 AM

I wonder if any one else thought it was strange...The owner of CN... Bill Gates and the PM have a meeting on Aids funding...Then CN strikers are ordered back to work...Right after their Private meeting. Just wondering.

Posted by: Gofaster on February 25 2007 2:51 PM

You picked up on that too...
ya think?

Posted by: Palopu on February 25 2007 4:38 PM

Problem is Bill Gates does not own CN Rail. Foreign ownership is limited to 15% I beleive. Thats not to say that various and sundry US Companies and Cdn Companies owned by US Companies dont at the end of the day control this Company, but I dont think Bill Gates has much to do with it.

CN Rail Unions have always been ordered back to work after 10 or more days, mainly because in fact they do have a catastrophic impact on the economy.

Posted by: camoose on February 25 2007 7:50 PM

I agree with you Palapo, the RR workers have always been legislated back to work. The company knows this and refuses to bargain in good because they know the workers will be legislated back to work. Always has worked that way. Some things never change.