More CN layoffs only if business slows dramatically during second wave, says CEO

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CN Rail's chief executive says the railway will only have to consider another painful round of layoffs if the North American economy slows dramatically and reduces shipping volumes during COVID-19's second wave.

A day after marking the Montreal-based railway's silver anniversary since privatization, Jean-Jacques Ruest says business is recovering from a big drop in volume that forced it to withdraw its full-year guidance.

However, he says the type of business it moves is vastly different than before the coronavirus struck in March and prompted lockdowns. Crude-by-rail fell dramatically and may not recover, while consumer freight is booming as people are spending more time at home than travelling.He's also not worried about U.S. President-elect Joe Biden's campaign promise to withdraw the permit for the Keystone XL pipeline or Buy America, saying the energy sector is much more tied to COVID-19 and the world economy and that infrastructure spending will drive business.

"Infrastructure projects are great for the rail industry. So whether there is a Buy America or not, if there is major infrastructure projects that will create demand for a lot of the stuff that we move."

 

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