Southern Railway of B.C. (SRY) employees are picketing outside the company's headquarters on River Drive in New Westminster today after being locked out in the midst of an unresolved collective bargaining process.
The announcement comes after more than six months of contract negotiations between Southern Railway and CUPE local 7000, which represents 126 employees.
"We are extremely disappointed in the outcome of these negotiations," Frank Butzelaar, Southern Railway president, said in a media release. "SRY believes in the collective bargaining process. Unfortunately CUPE has not shown similar commitment."
The company came to the lockout decision after extensive discussions and mediation with the B.C. Labour Relations Board's Grant MacArthur, according to the release.
"SRY cannot remain competitive without amendments to the current collective agreement with CUPE-7000," Butzelaar stated. "We believe our offer is fair considering the current economic circumstances."
The company will do its best to minimize the impact on customers, with its 34 managers looking after operations during the job action, Butzelaar told The Record in a phone interview.
CUPE Local 7000 is part of the same union that represents SkyTrain workers.
The union isn't accustomed to listening to private sector companies when it comes to contracts, Butzelaar said, adding that Southern Railway doesn't have the government's deep pockets.
"We are a small local company," he said. "We believe our offer is fair."
One of the sticking points, he said, is the company's desire to pull back on post-retirement benefits for new employees. Current employees who have the benefits would retain those after retirement, so the contract change would only impact new hires, Butzelaar said.
The change is necessary, he said, because Southern Railway, which moves goods the Lower Mainland, is competing with local and long-distance trucking companies.
Meanwhile, CUPE Local 7000 president Bill Magri said the union and the company have only met a dozen times in six months.
"They came to the table with concessions every time," Magri said in a phone interview with The Record.
The union received the lockout notice last Wednesday, then issued a strike notice two days later, Magri said.
The company is offering wage increases that are less than inflation, Magri said. The raise offer from the company is 1.5 per cent for the first four years, 1.9 per cent afterward, and a $1,500 signing bonus. The term of the agreement (six years) and overall staff reductions also concern the union, Magri said.
"Generally they (union contracts) are three years - four right now would be considered a longish agreement," he said.
In a show of support, the railway's office workers, represented by COPE 378, are also on the line with the CUPE members.
"It's a bad time for this to be happening, but we are prepared," Magi added.
Union workers will receive strike pay and health benefits coverage, he said.
SRY is a major transporter of freight in British Columbia's Lower Mainland and Fraser Valley. Almost one-half of the traffic the company handles originates or terminates on Annacis Island, where major automobile and forest product distribution facilities are located.
