The trains are parked and picket lines are set up at railway yards, as the Canadian railway system has been shutdown by an unprecedented work stoppage.
As of Thursday, August 22 at 00:01 Eastern time, both national railways — CN and CPKC — have locked out over nine thousand employees represented by the Teamsters Canada Rail Conference union who were otherwise set to go on strike.
Both railways and the union say they have put forward multiple offers, but that they did not receive a response or serious consideration from the other side.
“The TCRC leadership continues to make unrealistic demands that would fundamentally impair the railway’s ability to serve our customers with a reliable and cost-competitive transportation service,” said CPKC, in a statement shortly after the midnight deadline.
“The Teamsters have not shown any urgency or desire to reach a deal that is good for employees, the company and the economy,” noted CN.
Meanwhile, the union’s president, Paul Boucher, says “CN and CPKC have shown themselves willing to compromise rail safety and tear families apart to earn an extra buck. The railroads don’t care about farmers, small businesses, supply chains, or their own employees. Their sole focus is boosting their bottom line, even if it means jeopardizing the entire economy.”
Both railways say they are open to binding arbitration, which Labour Minister Steven MacKinnon could invoke under Section 107 of the Canada Labour Code.
More than two dozen farm and commodity groups are calling on the federal government to act immediately, as the cost of the stoppage is quickly adding up for farmers and processors. At a press conference on Wednesday, several producer groups, including the Grain Growers of Canada, the Canola Council of Canada, Pulse Canada, and the Canadian Federation of Agriculture (CFA), outlined the coming economic catastrophe that is already beginning in anticipation of the dual railway shutdown.
The Canola Council of Canada, for example, says lost exports of canola seed are estimated to cost around $11 million per day. If crush plants are forced to shut down, it will cost the industry approximately $20.5 million per day in lost sales of canola oil and meal.
The daily cost of the rail stoppage is estimated at over $1 billion per day based on the value of goods handled over the past year, but that number does not reflect potential damage to exports when customers question whether Canada is a reliable supplier.
Nine of the last 10 rounds of collective bargaining between CPKC (previously CP Rail) and the TCRC, dating back to 1993, have required federal intervention, including railway work stoppages in 2012, 2015, 2018, and 2022. TCRC members at CN also spent eight days on strike in 2019.
Related:
Government inaction on rail strike has Canada “sleep walking into a calamity”
