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NEW YORK (
Canadian National(CNI - Get Report) said it reached a deal to renew its labor contract with the Teamsters Canada Rail Conference in what has already been an active month of labor negotiations for Class I railroads.
Details of the agreement will be released pending its ratification by TCRC members, who make up about 1,800 locomotive engineers for the Montreal-based company.
Another railroad has struck a labor deal
"To my knowledge, it's the first time we have reached a tentative agreement with CN before the expiration of the old contract," said Rex Beatty, TCRC president, in a statement.
Major freight railroad companies
averted a strike in the U.S.
at the beginning of December as they reached agreements with two of the rail unions and extended talks until February with a third.
Before railroad companies reached agreements with the unions, House Speaker John Boehner (R., Ohio) said that
Congress would take any legislative action
to avert a "job-destroying" shutdown of the nation's rails.
He was likely referring to the "Commerce Clause," or Article I, Section 8, Clause 3 of the U.S. Constitution that gives Congress the power to regulate commerce among the states. A strike could have cost the country an estimated $2 billion a day.
All publicly traded Class I railroad stocks were rising Tuesday as most shadowed the
Dow Jones Industrial Average.
Union Pacific(UNP - Get Report) was leading the sector at $102.78, up $2.18, or 2.2%; Canadian National was gaining to $76.87, up 35 cents, or 0.5%;
CSX(CSX - Get Report) was at $21.09, up 19 cents, or 0.9%;
Kansas City Southern(KSU) was climbing to $66.06, up 61 cents, or 0.9%;
Norfolk Southern(NSC - Get Report) was at $73.58, up 50 cents, or 0.7%; and
Canadian Pacific(CP) was lagging the sector at $63.38, up 23 cents, or 0.4%.
-- Written by Joe Deaux in New York.
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