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CAW union, CP Rail seal tentative 3-year contract

Sun Jan 27, 2008 9:23pm EST

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TORONTO, Jan 27 (Reuters) - The Canadian Autoworkers Union reached a tentative three-year contract with Canadian Pacific Railway Ltd (CP.TO) on Sunday, lifting the threat of a strike that could have started as early as this week.

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The union, which represents 2,500 rail workers in 22 Canadian locations, said in a statement its bargaining committee was recommending that workers accept the agreement, which was reached after four months of negotiations.

It said ratification meetings were likely to start next week, after local union leadership had reviewed the deal. "No details of the agreement will be released until after workers vote on the contract," it said.

The union earlier this month set a Jan. 29 strike deadline against CP Rail, which is Canada's second-largest railway. (Reporting by Janet Guttsman; Editing by Valerie Lee)



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