CN PENSION – INTERIM ARBITRATION AWARD

I was unable to copy the interim award on my blog sight as it was in PDF format. I previously sent a copy to running trades and I have been advised it is now posted on;.

http://www.runningtrades.com/

MY COMMENTS:

As most of you are aware the participating Unions all filed grievances regarding the CN Pension Plan. As a matter of process it was agreed that the CAW grievance would be the “lead” grievance with the other Unions intervening in the dispute.

The parties agreed to a format of resolution refereed to as med./arb. (mediation/arbitration) and retained the services of M. Picher (the CROA & DR Arbitrator) for these purposes.

The first attempt at settlement was by way of mediation. It appeared that a settlement had been reached in principle however CN “pulled out” at the last minute and opted for binding arbitration.

It is my view that CN “pulled out” as it believed that the Arbitrator had to first decide on the Company’s preliminary argument of “arbitrability” and this, the Company believed, would give them a “no risk” opportunity to resolve the dispute in their favour. Simply put, had the Arbitrator heard the preliminary objection first and ruled in the Company’s favour there would be no arbitration. To point, the Union’s grievances could not proceed.

It is my opinion that the decision of the Arbitrator was the correct one and certainly can be considered a “win” for the Unions. I believe it was a well thought out award that, essentially, put both parties on the same footing should they proceed with a hearing on the merits. In other words, both sides have everything to win and everything to lose should they proceed to arbitration.

NOTE: For the Unions there was no alternative but to proceed to arbitration once mediation failed.

The issue the Company now faces, given the interim award is, do they attempt to resurrect the proposed mediated settlement (a “win-win” scenario) or proceed to arbitration with all the attached risks?

In my opinion a “win-win” is preferable for both parties. To proceed to arbitration resulting in a winner take all would no doubt have a continued negative impact on Union/Management relations on a move-forward basis, including Collective Bargaining.

Something the Company must now consider given this award.

Rex Beatty