Back to top

Image: Bigstock

Canadian National Inks Tentative Labor Deal: What Lies Ahead?

Read MoreHide Full Article

Canadian National Railway Company (CNI - Free Report) received encouraging news on the labor front when it inked a tentative collective deal with United Steelworkers (USW) — a trade union representing workers in Canada, the Caribbean and the United States.  

As far as Canadian National is concerned, the union (USW Local 2004) covers roughly 3,000 track and bridge workers at this Canada-based railroad operator. However, details of this provisional agreement with USW were not disclosed. The current collective agreement is valid till Dec 31, 2018.

Markedly, the provisional deal does not come into effect immediately. In fact, tentative agreements do not necessarily mean that the deal will be operational. The provisional deal inked by Canadian National will be voted upon by union members shortly.

It will be effective only if the voting result is favorable. The company would be hoping for favorable outcome as satisfied labor groups generally imply greater operational efficiency.

Earlier this month, this Zacks Rank #3 (Hold) company inked another tentative collective deal with Unifor Local 100 — the union covering approximately 2,100 locomotive and freight-car mechanics, electricians and apprentices, who work at Canadian National across Canada. This tentative deal will also undergo the ratification procedure before becoming effective.

Labor-related updates apart, Canadian National was in the news on the safety front recently. In line with its objective to promote safety, the company announced the achievement of its benchmarks pertaining to the implementation of the positive train control (PTC) plan for 2018. Additionally, last month, the railroad applied for a two-year extension to complete deployment and interoperability.

Stocks to Consider

Investors interested in the Zacks Transportation sector may also consider Azul S.A. (AZUL - Free Report) , Air France-KLM SA (AFLYY - Free Report) and Fly Leasing Ltd. ,each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

In the past six months, shares of Azul and Air France have gained 49.7% and 19.7%, respectively.

Meanwhile, the Fly Leasing stock boasts an impressive earnings history, having outpaced the Zacks Consensus Estimate in three of the trailing four quarters, the average beat being 13.5%.

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.

Click here for the 6 trades >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Canadian National Railway Company (CNI) - free report >>

Air France-KLM SA (AFLYY) - free report >>

AZUL (AZUL) - free report >>

Published in