Winnipeg Free Press Newspaper Archives May 8 1986, Page 85

Low-resolution version. To view a high quality image

Start Free Trial
Winnipeg Free Press (Newspaper) - May 8, 1986, Winnipeg, Manitoba The railways want to tear up axe jobs Dankl if Totti Montreal up they enter the new world of Canadas two nation Al railways have in mind to Don Over Kilometres of truck ill the biggest reshaping of the Rait system since the turn of the thousands of railway jobs Are going to disappear As the added Competition unleashed by deregulation forces the carriers to Stream line operations and Speed the introduction of state theart unions will be pressed for con tract concessions to boost productivity and keep the railways competitive with other modes of particularly truck if the experience of the airline Industry is any the con Cessions wont come without a restructuring Ronald president of Ca Nadian National told a meeting of senior Union officials that if current forecasts pan the Crow owned railway will have fewer employees by it has up rail could abandon As much As a third of its Kilometres of says Robert the company Vic president of mar Canadian National railways would drop 40 per cent of its Kilometres of main and Branch much of which was inherited when the car was created to oper ate the bankrupt grand grand trunk Pacific and Canadian Northern railways in this restructuring would take place Over several years Canadian nationals goal is to drop kilo metres a year for 10 in the final says Wil Liam Canadian nationals senior Vic president of it boils Down to this we have too much we have too Many railroaders and we have to do the Job better with fewer the catalyst Tor such massive change is transport minister Don Mazankowski which is expected to be tabled in the to reduce regulation in transport industries under Federal the ministers vision is plainly stated in his 1985 policy Aper Freedom to move More transport minister Don Mazankowski policy paper could open door to massive rail line less fewer workers Competition will mean lower freight rates for the railways say Fine to More Competition Between railways or Between different modes of transportation but they must be Able to reduce costs or the country will end up with a sick rail they wonder whether the current government or its successors will have the stomach for a major less traffic Canadian National once had one of the most productive networks on the that was until the rail Industry was deregulated in 1980 and american carriers began to rationalize their opera in moves less traffic on average per Kilometre of its track than any major North american and up rail ranks just ahead of says cps Ritchie says most of the track his railway could do without carries the equivalent of 20 truck loads of freight a Day or track must be maintained in Safe operating condition and that costs the railways say they wont abandon communities or that they will use other mainly to cart goods be tween major rail terminals and shippers who lose direct rail a there Are better ways to serve says were pre pared to quote a rate to move a product from origin to although we May move it part Way by rubber and part Way by wed like to use the Mode that Best does the secret rebates shippers would still make one Call to the railway to arrange a he they would get one railway the changes being ushered in by Mazankowski Are far greater than the railways had in mind two years ago when they asked for government help in com Peting for trans order traffic against the rail the Canadian railways complained that american competitors were depriving them of million a year by paying secret rebates to shippers to reroute trans order traffic so the railways earned a larger portion of the freight charges under american rail ways Are free to enter into confidential contracts with shippers and pay secret in freight rates must be published and secret rebates Are the railways can Exchange information and set rates the existing regulatory Frame established by the National transportation act of tends to favor Competition Between modes rather than Competition Between although there is in and up told Ottawa that setup was Fine for the Domestic Market and should be but Mazan Kowski opted for bolder he has proposed replacing joint rat setting and published rates with secret rebates would be Small or isolated could still ask for a published and these tariffs could be the extent of the proposed re forms took the railways by sur even their doubts Haven been fully but they Are warming to the Chal weve swung con cedes cps whether it is a tactical swing around or a Strate Gic swing around Only time will but rail executives warn that if the government wants a healthy rail Industry and lower freight rates it has a critical role to play in helping the carriers lower their the Federal transport bureaucrat they Point can be tortuous by slow in approving technological improvements that improve product it took Over a decade to get the airflow method of Brake testing and the railways Are in the third year of a fight to do away with the so the government has Only agreed to a test of caboose less train while the caboose is being steadily phased out in the United it can take years to get Federal permission to abandon a rail mechanism proposed canadians Are already getting a taste of the cos cutting mentality that is gripping the railways As the Dawn of a new regulatory Era a Canadian National wants to abandon its Money losing rail Way in Newfoundland and has a Deal to sell off its trucking Divi in has stirred up a hornets nest in Moncton by acknowledging it is conducting a study of whether it needs to keep three maintenance to that sounds like in is preparing the ground for closing the shops with the loss of in the United deregulation has seen thousands of kilo metres of track either abandoned or sold to new or Many of which Are non Mazankowski proposed to expedite proceedings for abandoning Branch lines and the minister could technically veto an abandonment of so called no protected cer Tain especially those maintained for hauling Grain would continue to enjoy protected he proposed a mechanism for Al lowing Shoreline operators to take Over lines which no longer interest the major Mazankowski policy paper without elaboration that under appropriate Cir lines other than Branch lines May be that could open the door to the abandonment of secondary and even primary main Canadian by virtue of the three rail systems it inherited in continues to operate parallel main lines in parts of the up rails network is but some of its secondary main lines might be candidates for abandon up might decide it Doest need a direct for Between Saskatoon and says traffic could just As easily be routed through pm tops 500 list Toronto up for the third Ysuf general motors of topped the financial Pitt to ranking of Canadas big Gest companies with sales of nearly i the firm is Welt ahead of second ranked Canadian Pacific with sales of the financial Pott said this the rest of the top 10 companies in this years 900 ranking by the Finan Cial in order of size Ford motor of Canada with sales of billion Bell Canada Prises billion George Weston billion Imperial Oil billion Alcan aluminium billion Chrysler can Ada billion Shell Canada billion and Gulf Canada although the top four companies remained George Wes ton moved up to fifth spot and push ing Imperial Oil to Bell Canada again took top Billing in terms of profits with net income of billion in up 12 per cent from the previous it now has the distinction of being the first Canadian company to shatter the Mark in a years annual net Only 39 of the top 500 companies took Down from 47 last about half had profit gains from the previous some of the such As Hudson Bay and dome actually improved that is they managed to lose this years biggest corporate loser was Canada which followed 1984s lion deficit with a loss of million in insurance Rule changes urged Toronto up theres an urgent need to modernize rules governing Canadas life insurance in says Thomas chairman of Sun life Assurance of Cana without regulatory Mutu Al life insurance in which the policyholders Are the owners of the Are at a competitive gait told the annual meeting of the Mutual life insurance company this one of the reforms heading the list is getting trustee status for insurance companies so they can admin ister the pension funds they set up for companies and gait said in an interview after the meet forcing insurers to use the trustee services of Trust companies just adds to the expense of setting up and running pension As insurance companies have missed fast breaking business opportunities in the area of acquiring Trust companies because the Law Doest allow gait Ottawa studies and position papers on the financial services Industry indicate a consensus that no Bank financial institutions should be Given More flexibility and offered the Opportunity to expand their gait said he favors All three major proposals by Ottawa for Reform extending the Powers of insurance companies permitting direct ownership of other financial institutions permitting insurance to own other financial institutions indirectly through a financial holding Compa Summit leaders offer illusion of Progress the pretence or even genuine belief that dramatic new eras begin at political Summit meetings is a misconception that runs it was no different at this weeks Tokyo Summit of the leaders of seven big Industrial nations rang ing from the giant to Canada and each on tenth the size of the american Economy or did they do and say great things to touch off new trends in Exchange interest growth and International terrorism it didst seem certainly the reaction of markets mirrored Strong possibly the hottest and one of deep importance for us was that of Exchange Treyve been hugely erratic for As prices of currencies surge Back and they cause growth harming uncertainty for Trade and the world Longs for More Stabile there were an agree ment to coordinate National economic policies to curb such fluctuations to manage currency prices in this supplemented by direct intervention in by one Farouk it was even a Deal to have what amount to unofficial pegged Canadas for might be regarded As pegged in a Range of 71 to 74 the agreement supposedly amounted to this that the nations would achieve and protect stable Exchange rates by adjusting their internal possibly pain they be made to fit the desired currency this would prevent countries from doing what they wished with their economies and letting currencies go where they Jack Mcarthur that politically risky and there fore unlikely in a in Japan and West Germany continue refuse to do that very they reject the american request that they Pep up their they dont want to do something that stimulates their purchases of foreign goods and cuts deeply into their huge surpluses of exports Over thus a motherhood principle was agreed upon without settling the differences Over the Only things that matter when is it right to change your economic policies to maintain currency prices at appropriate Levels what Are the appropriate Levels the Wall Street journal reacted with the headline traders sceptical of Tokyo and How cant wave Wand in the Accord is said to mask a failure to the get the others to agree on target prices for their currencies if not would require big changes in their other so there was no such thing As a Deal for unofficially pegged or Semi pegged there cant be without agreement on what their prices should As All this you cant just wave a Wand and create pegs that will currencies ultimately and rapidly must reflect Market if the pegs Arent backed by other they have to be the though possibly less erratic in the Short run than those without will be no different in the Long heres another example of the fact that the More things the More there the the naming of Libya As a sponsor of terrorism surely is a though heralded by the As meaning terrorists now have no place to the seven and the world have had no doubt about Libya grim the disagreement is on what can be done about those differences didst seem to theres also a hollow ring in the support for Freer Trade generally and the need to defuse a ridiculous and damaging Trade War in farm prod therell be More there would have been whats still lacking is action on Trade protectionism and subsidize that Hast altered and May the desire to create the illusion of great Progress at such meetings is compulsive for the leaders who take part and Many of the Media people who no Leader wants to admit that a highly publicized Gath ering achieved Little or nothing or that what it did achieve might easily have been managed with some phone Calls or Lowe level meet just As Many of the Media Are inclined to justify their massed attendance by straining their imaginations about what took the presence the Canadian Media is there less i addicted than their sophistication results from having seen too Many Federal provincial or Al prov Ince meetings that went it has reached the Point where Many in the Canadian Media cynically and usually correctly write about what failed to happen and this can have Good govern fearing their efforts will be labelled May tend to negotiate More extensively in private and at lower Levels then meet at the Summit Only if Treyve got some thing almost hammered such talks Are Likely to be More they avoid the Glare of publicity in the preliminary stages a Glare that often forces govern ments to take uncompromising stands to play to the gallery Back footnote the big seven nations Are awesomely Large in the world dominate production subject to the sometimes great unreal ties of translation into a com Mon they account for Over half the globes the is More than twice the size of 2 output of others ranges from less than on tenth that of the americans to on fifth West the seven have More than half the value of the exports of the noncom Monist the drop in Oil prices and thus the value of sales by major Oil exporters adds to their in Export the Japan and Germany each has been in the 10 to 13 per cent Range and the others from four to Canada being around five per Toronto Star new franchise Opportunity in the Winnipeg area Home renovation new construction Market Accel rack Canadas largest manufacturer of closet door closet doors and closet organizer systems invites you to explore a magnificent ground floor Acme excl sly franchise dealers Market an Superb Quality line of Mirror closet fitted furniture and closet accessories to renova tors and on an installed Complete setup support and ongoing marketing and opera onal support Are several Canadian Market areas Are now available for fran Chise for our Complete exclusive information kit Call or write today to Harold Fry sales marketing Fuff 100 Walker drive Ontario l6t 4h6 18002660121 Ontario Quebec 18002680145 rest of Canada financial Success seminar topic How to have Money investors gup address Winnipeg Centennial Library auditorium 251 Donald Street Date May time admission is to Register please Call Wendy at Denis Lavigne Paul Taylor profit from our

Search all Winnipeg, Manitoba newspaper archives

All newspaper archives for May 8, 1986