Layoff notices issued to 11 ACR employees, CN confirms

Layoff notices have been handed out to employees working for the Algoma Central Railroad (ACR) as a result of the deal to hand operation of the line over to a third party.

“CN has taken steps with regard to the employment of certain employees and six management employees were notified earlier this week that their employment would be terminated effective March 31,” said Mark Hallman, director of communications and public affairs for CN, which owns the ACR.

In addition, Hallman said five unionized positions will be affected.

The company announced early last year that the passenger service would cease to operate after March 31, 2014 because the federal government failed to renew a $2.2-million annual subsidy.

Soon after, the federal government announced a one-year extension of that subsidy which expires at the end of this month.

A local group secured the one-year extension and is awaiting word from the federal government about a request for $7-million over five years to help a third-party operator revive the line.

Hallman declined to provide specific information as to which specific positions were eliminated.

“We have received a notice of material change and are looking it over now,” said Chris Lowe, Teamsters Rail Conference secretary-treasurer, when contacted by phone Friday morning.

Teamsters represents on-board employees for both the Sault to Heart passenger service on the ACR, as well as the Agawa Canyon Tour Train.

It was not clear whether the five unionized employees who received layoff notices from CN are Teamsters members.

ACR employees are also represented by other unions.

Late last week B. Allen Brown, the president and CEO of Railmark Holdings, Inc., announced he was hiring 35 rail-related jobs for a Sault to Hearst passenger service.

“We are a railroad organization and we are looking for railroad and customer service type jobs,” said Brown at the time.

Lowe said the Teamsters were not involved in negotiations or notified by CN or Railmark in advance of the announcement and found out about the potential for impending job losses from Brown’s jobs announcement.

The official announcement was made yesterday that Railmark Canada, Ltd. will take over operation of the ACR and Agawa Canyon Tour Train as of April 1 of 2015.

The management employees were provided with severance packages. Severance eligibility for unionized employees will be determined through negotiations within the next 30 days.

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(FILE PHOTO)