Back to top

Image: Bigstock

Canadian National Ratifies Contract With Locomotive Engineers

Read MoreHide Full Article

Canadian National Railway Company (CNI - Free Report) announced ratification of its new contract with Brotherhood of Locomotive Engineers and Trainmen (BLET), representing 475 locomotive engineers on its Illinois Central (IC) property in the United States.

The contract runs through Dec 31, 2019 and offers better wages and other benefits commensurate with industry standards every year under the agreement.

In May 2018, the company ratified another contract with Teamsters Canada Rail Conference, representing 1,800 of its locomotive engineers. The deal is valid till Dec 31, 2022 and provides wages per industry standards annually as long as the contract exists.


In fact, labor deals seem a common affair in the railroad space of late. We remind investors that last month, Canadian Pacific Railway Limited (CP - Free Report) reached a tentative agreement with its labor union Teamsters, after the workers went on a strike and rejected the company’s latest contract offer. The company was accused of bullying its employees, making them toil for long hours.

With companies striking multiple labor deals, bottom line of the companies could be pressurized. Even though such treaties ensure the staff’s performance efficiency, high employee wages will add to operating costs, eroding profits in the process.

Zacks Rank & Key Picks

Canadian National carries a Zacks Rank #3 (Hold). Two better-ranked stocks in the broader broader Transportation sector are GATX Corporation (GATX - Free Report) and Expeditors International of Washington, Inc. (EXPD - Free Report) . While GATX holds a Zacks Rank #2 (Buy), Expeditors sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of GATX and Expeditors have rallied more than 19% and 39%, respectively, in a year.

Today's Stocks from Zacks' Hottest Strategies

It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.

And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.

See Them Free>>

Published in