Labour board ruling clears path for dual CN and CPKC rail stoppage on or after August 22

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Editor’s note: This story has been updated with CN and CPKC’s notice that they intend to lock out workers if a deal isn’t reached before August 22.

August 22 is the new deadline after which nearly 10 thousand workers for both of Canada’s Class I railways — Canadian National (CN) and Canadian Pacific Kansas City (CPKC) — could go on strike or be locked out, unless they reach new labour deals with their employers.

The prospect of a dual rail strike was postponed in May when then-federal labour minister Seamus O’Regan Jr. asked the Canada Industrial Relations Board (CIRB) to investigate whether there would be any public safety concerns arising from what could be an unprecedented rail work stoppage.

The Teamsters Canada Rail Conference (TCRC) union and railways were not allowed to implement a strike or lockout in the meantime, setting up the timeline for a full work stoppage during the peak grain shipping season.

On August 9, the CIRB said it determined the rail work stoppage would not cause any serious public health or safety dangers, despite concerns being raised about availability of propane, food, and supplies for water treatment. The board also ordered a 13-day cooling-off period, setting August 22, at 00:01, as the deadline after which a work stoppage can occur. (Both railways had requested a 30-day timeline after the CIRB ruling before job action would be allowed.)

“The decision aligns with what the Teamsters, CN, and CPKC have long maintained: there is no need for essential services in the event of a work stoppage in the rail industry,” said the union, in a statement coinciding with the CIRB announcement.

72 hour notice will still be required for any strike or lockout on or after August 22.

Shortly after the CIRB ruling became public, CPKC and CN announced they plan to lock out their TCRC employees on August 22, unless the union and railways can reach a deal before then.

“CPKC provides this public notice to mitigate uncertainty and give our customers and supply chains proper time to plan for a safe and orderly shutdown of railway operations,” CPKC said, in a statement. CPKC is also embargoing all dangerous goods that fall into the “toxic by inhalation (TIH)” category to clear the system prior to a work stoppage, and says other product embargoes will be issued leading up to August 22, if necessary.

Around a dozen agriculture and commodity organizations were among more than 110 business groups and chambers of commerce that sent an urgent letter on August 9 to Prime Minister Justin Trudeau, along with new Labour Minister Steven MacKinnon and Transport Minister Pablo Rodriguez, asking them to “immediately intervene and do everything necessary to avert a disruption in Canada’s Class I railways.”

The letter’s signatories include the Canadian Canola Growers Association, Canadian Cattle Association, Canadian Federation of Agriculture, Canadian Agri-Food Trade Alliance, Canadian Pork Council, Canola Council of Canada, Fertilizer Canada, Grain Growers of Canada, Pulse Canada, Wheat Growers Association, and the Western Grain Elevator Association.

The business groups say a work stoppage at both CN and CPKC would put the livelihoods of millions of Canadians in jeopardy.

“All of Canada’s ports, logistics and warehouse operators, and suppliers will be affected, while a prolonged stoppage will quickly lead to shortages of supplies for numerous industries, forcing businesses to suspend their operations and furlough their employees. Factoring in the millions of Canadian jobs that would be impacted, the magnitude of the disruption is daunting,” says the letter, posted on the Canadian Chamber of Commerce’ website.

With more than a billion dollars worth of goods moved by rail each day, a shutdown would also hurt Canada’s international reputation and relationships with trading partners, the business groups say, noting “a prolonged railway strike will also surely weaken Canada’s negotiating position in advance of the renewal of the Canada-United States-Mexico Agreement in 2026.”

Bridgitte Anderson, president and CEO of the Greater Vancouver Board of Trade, said she was disappointed with the CIRB decision, but heartened to see CN and CPKC and the union have agreed to restart negotiations.

“We sincerely hope that new contracts can be reached during the 13-day cooling-off period ordered by the tribunal,” said Anderson.

The dispute revolves around three collective bargaining contracts that expired on Dec. 31, 2023, affecting the following railway workers:

– Nearly 6,000 conductors, locomotive engineers, and yard workers at CN,
– Nearly 3,200 conductors, locomotive engineers, and yard workers at CPKC, and
– Around 80 or 90 rail traffic controllers at CPKC.

At least four consecutive rounds of labour talks between CPKC (previously CP Rail) and the Teamsters Canada Rail Conference (in 2012, 2015, 2018 and 2022) have resulted in work stoppages. TCRC members at CN also spent eight days on strike in 2019.

West Coast exports could be affected by another labour dispute, as more than 700 dock foremen at the Port of Vancouver who are members of the International Longshore and Warehouse Union (ILWU) local 514, were scheduled to vote on strike action on August 9.

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