US Markets

CN Rail says workers' strike to hurt profit growth in 2019

Credit: REUTERS/MARK BLINCH

Canadian National Railway Co cut its target for growth in adjusted profit for 2019 on Tuesday, citing impact of an eight-day strike that led to delays in shipments.

Adds background

Dec 3 (Reuters) - Canadian National Railway Co CNR.TO cut its target for growth in adjusted profit for 2019 on Tuesday, citing impact of an eight-day strike that led to delays in shipments.

The rail operator expects 2019 adjusted diluted per share growth in low to mid single-digit range compared with its previous forecast of growth in the high single-digit range.

The country's biggest rail strike in a decade drew national attention over worker fatigue, after labour union Teamsters Canada released a recording of an exhausted rail worker pleading with a CN supervisor for a break after a 10-hour shift.

The strike, which saw about 3,200 conductors and yard workers stop work, demanding improved working conditions and rest breaks, ended last week.

Prior to the strike, CN said it had cut management and union jobs as it grapples with an economic slowdown.

Canada relies on CN and Canadian Pacific Railway CP.TO to move products such as crops, oil, potash, coal and other manufactured goods to domestic ports and the United States.

(Reporting by Rachit Vats in Bengaluru; Editing by Arun Koyyur and Shinjini Ganguli)

((Rachit.Vats@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 80 6749 3798; Reuters Messaging: rachit.vats.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

Commodities

Latest US Markets Videos

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More