6 RAIL TRANSPORTATION

EMPLOYMENT

Over the past 15 years, employment in the rail sector has declined significantly, from more than 67,000 employees in 1990 to about 35,000 in 2005. This equals an average 4.3 per cent decrease per year. At 1.7 per cent, the decline was not as significant in 2005 as in previous years. Employment for Class I carriers dropped from 61,000 employees to 31,500, or 4.3 per cent per year over the period, but it increased slightly from 2004 to 2005. Employment at regional carriers fell 9.4 per cent per year, from 5,600 employees to just below 1,300 in 2005. This was due in part to CN’s takeover of Algoma Central Railway and BC Rail. By contrast, employment at shortline carriers increased 9.3 per cent per year, from 550 employees to just over 2,100. The relative levels of employment in each class of carrier are consistent with these changes. From 1990 to 2001, the Class I carriers dropped from 91 per cent to 86 per cent of total rail industry employment, then increased slightly to almost 91 per cent in 2005. After a healthy and steady share in the late 1990s at nine per cent, the regional carriers dropped to just 3.7 per cent of industry employment in 2005. As would be expected, shortline employment grew from a virtually non-existent proportion to 6.1 per cent of total rail industry employment in 2005, marking the first year that this sector’s share exceeded that of the regional sector.

Table 6-4 compares the level of employment in the rail industry in 2004 and 2005. Addendum Table A6-4 shows further details.

Note: Totals may not add up due to rounding.

1. Estimated for several carriers.

Major Events in 2006

Infastructure

Industry Structure

Employment

Energy

Freight Transportation

Passenger Traffic

Price, Productivity and Financial Performance