Canadian Pacific Railway Ltd. (CP.TO) reached a tentative four-year deal with the Teamsters Canada Rail Conference, ending a strike that began late Tuesday.
Operations will resume Thursday at 6 a.m. local time across Canada, the Teamsters said in an emailed statement. The agreement covers about 3,000 conductors and locomotive engineers, the labor union said.
The end of the strike at Canada’s No. 2 railroad defuses a risk of worsening freight congestion in an economy already buffeted by logjams at larger rival Canadian National Railway Co. Customers at Canadian Pacific include Teck Resources Ltd., Canada’s biggest diversified miner, and potash producer K+S AG.
Canadian Pacific advanced 3 per cent to $247.24 at 2:08 p.m. in Toronto, the biggest intraday gain in five weeks. The Calgary-based railroad climbed 4.6 per cent this year through Tuesday, while the S&P/TSX benchmark index dropped 1.8 per cent.
The company reached a tentative three-year agreement late Tuesday with a smaller union, the International Brotherhood of Electrical Workers.
Advertisement