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Wednesday, December 17, 2008

CP Rail Hit by Recession

Canadian Pacific Rail has announced that they will be forced to cut 600 union jobs in order to better weather the current economic recession. The Calgary, AB company currently has a workforce of 16,000, but of course, due to the cuts payroll will be lighter in the upcoming quarter. In addition to trimming nearly a thousand jobs, corporate executives will also be restricting air travel on corporate jets as well as doing away with different corporate benefits.
In the message to staff, Chief Executive Fred Green said the "coming months will not be easy ones." He said his goal is to get the "franchise back on track" by focusing on "containing costs on all fronts, in tough ways," the newspaper reported, noting Green held a town hall meeting with staff on Tuesday.
Up until this point, rail appeared to be "weathering" the financial storm quite well in comparison to other industries. It will be interesting to see where things go from here for unions in general as well as alternative freight options.
Source: SupplyExec