Southern Railway of B.C. (SRY) has locked out 126 unionized workers following six months of collective bargaining negotiations.
Members of CUPE 7000 were given 72-hour notice on New Year’s Eve, but the lockout did not go into effect until January 5.
“We started negotiations on June 11 and we really felt we weren’t getting anywhere,” said SRY president Frank Butzelaar.
“We’re a small, local railway and we’re competing against local and long-distance trucking companies…and it’s been a challenge trying to explain to (the union) the competitive forces we face and we felt they weren’t listening.”
CUPE 7000 president Bill Magri told Business In Vancouver the union was not surprised by the lockout and no further negotiations have been scheduled.
“All they’ve got to do is give us a call,” he said.
“We just want a fair and equitable agreement for our members.”
He said there are 36 outstanding issues still on the table including wages, overtime and the length of the next agreement.
The railway, which was originally owned by BC Hydro, was privatized in 1988.
The Washington Companies then purchased the railway in 1994. Owner Dennis Washington also owns the Seaspan Marine Corporation.
SRY has 62 miles of mainline track extending from Annacis Island to Chilliwack and primarily handles automobiles, forest products and feed grain.
The company shuttles freight and cars brought in by Canadian National, Canadian Pacific and Burlington Northern Santa Fe railways.
“Small companies like ourselves, we just can’t support the public sector benefit packages and that’s really what this comes down to,” Butzelaar said.
But Magri said that doesn’t paint the full picture of the parent company’s financial situation.
“It may be a small, private company but it’s owned by one of the richest men in the United States who has many, many companies under his corporate banner,” Magri said.
SRY has 168 employees including the 126 workers who have been locked out, according to Butzelaar.
He said it’s unknown at this point what impact the lockout will have on operations. In the meantime, SRY’s managers will be operating the short-line rail services.
In a December 31 press release, Magri said the use of replacement workers during a strike or lockout would be illegal.
He asked customers to respect picket lines and requested the support of the Teamsters, Longshoremen, Marine Workers, Grain Workers, UNIFOR, United Steelworkers, and any other affected union whose members would be in the position to transport “hot” goods.
Magri told Business In Vancouver on January 5 that the union does not approve of management staff operating the services.
“The issue I have is a safety issue for the public,” he said.
“The managers are certainly qualified and certified to do railway operations but they’re not necessarily as current as people who do the work every day, day-in, day-out.”
