After a summer in limbo, workers at Canada’s major railroads will be able to go on strike later this month after all.
Canadian Rail Negotiations Resume Ahead of Labor Board Ruling
The Canada Industrial Relations Board (CIRB) has ruled that a work stoppage of 9,300 workers across Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC) would not pose a danger to public health and safety.
“[T]he Board has concluded that there are no direct and convincing facts or information that raise concerns of an immediate and serious danger to the safety or health of the public,” read the ruling, released on Friday.
However, the CIRB acknowledged the drawbacks of a strike.
“There is no doubt that a work stoppage…would result in inconvenience, economic hardship and, possibly, as some groups and organizations have suggested, harm to Canada’s global reputation as a reliable trading partner,” the ruling read.
The board said a nationwide rail strike could occur as early as Aug. 22 as part of a 10-day “cooling-off” period, if a new contract is not reached. Teamsters Canada Rail Conference (TCRC), the union representing the employees, said it would file the required 72-hour strike notice on Aug. 19 ahead of any labor action if a deal is not made.
The two prior collective agreements expired on Dec. 31, 2023, but have been extended under Canadian law until the parties reach a new deal.
Sourcing Journal reached out to CN and CPKC for comment.
Both CN and CPKC restarted their contract negotiations with the Teamsters on Wednesday, which includes Labour Minister Steven MacKinnon and federal mediators.
“From the very beginning, rail workers have only ever sought a fair and equitable agreement,” said Paul Boucher, president of Teamsters Canada Rail Conference in a statement. “Unfortunately, both rail companies are demanding concessions that could tear families apart or jeopardize rail safety. Rail workers have fought for a safer and more humane industry for decades, and we will not accept moving backwards.”
The railroads and the union workers haven’t been able to come to an agreement on points including wages, as well as issues pertaining to crew scheduling, hours of work and fatigue management. TCRC represents engineers and conductors on both railways, as well as rail traffic controllers on CPKC.
In a Friday blog post following the ruling, the Teamsters were critical of both railroads, noting that CPKC “wants to gut the collective agreement of all safety-critical fatigue provisions.”
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“The end result will mean train crews would be forced to stay awake even longer, increasing the risk of derailments and other accidents. CPKC has also failed to address the understaffing of rail traffic controllers,” the union claims.
Meanwhile, the Teamsters based CN for aiming to implement a forced relocation scheme, “which would see workers ordered to move across the country for months at a time to fill labor shortages.” CN is also seeking to extend workdays in all provinces west of Ontario.
In May, after the union voted overwhelmingly to approve a strike mandate, then-Labour Minister Seamus O’Regan put the strike on hold when he requested the industrial relations board to review whether the country’s railroads must continue to transport certain essential goods, like propane.
The Teamsters quipped in their statement that the temporary suspension of a right to strike robbed them of negotiating leverage.
O’Regan sent the request among concerns from a coalition of agricultural groups, who wrote him relaying concerns that even a short-term disruption could lead to weeks of production delays.
According to MacKinnon, the railways transport $400 billion Canadian dollars ($290 million) in goods annually.
Canada relies heavily on its extensive railway network, which transports exports throughout the country including grain, potash and coal, and a strike could cause significant economic damage.
Apparel brands could see an impact as well, with many bringing in more inventory earlier than usual due to the strike threat, according to Mike Chisholm, CEO and president of Canada-based logistics and transportation services provider A&A Customs Brokers.
Chisholm told Sourcing Journal in July that his company had been helping more apparel clients find warehouse and distribution space since so many had been ill-equipped to store the excess inventory that had brought in.
Such a Canadian rail strike wouldn’t occur in isolation either, given that both railroads include service into the U.S., with CPKC’s system extends through the central U.S. all the way through to Mexico.
Although U.S. rail and truck carriers, as well as Canadian truck carriers, can likely pick up most of the freight that would be affected by a Canadian rail strike, this could lead to tighter shipping capacity, potential delays and higher shipping costs.
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