On Aug 9, Canadian Pacific Kansas City (CPKC) and Canadian National (CN) issued lockout notices to the Teamsters Canada Rail Conference (TCRC) effective August 22, if a negotiated settlement or binding arbitration cannot be reached in that time. This potential lockout of the TCRC, representing approximately 9,300 engineers, conductors, yard workers and rail traffic controllers across the two railways, would fully cease operations on both of Canada’s trans-continental railways and bring a halt to the movement of goods across the country.

The lockout notice followed the ruling earlier in the day by the Canada Industrial Relations Board (CIRB) that found public health and safety will not be compromised in the event of a full-scale disruption to the rail services across the country. The CIRB a;sp ordered a 13-day cooling-off period as part of their decision, thus the earliest possible commencement of a strike or lockout would be 0001 hours on August 22.

The railways had resumed separate contract talks with TCRC representatives on August 7, following a meeting with Canadian Ministers of Transport and Labour. The talks were held with the assistance of federal officials however both sides reported no progress was made in these discussions.

Subsequent to the CIRB decision, CN Rail also made a formal request to the federal government to order binding arbitration on both sides given the ongoing lack of progress in negotiations. This move was also supported by CPKC. The Minister of Labour has yet to make a decision on this request.

CN Rail have made 4 separate offers to the TCRC this year which they have stated, “included points on wages, rest, and labour availability while remaining fully compliant with the government-mandated rules overseeing duty and rest periods.”
CPKC Rail have made 2 offers the union this year which, per their website, would offer “significant benefits for our employees and fully comply with new regulatory requirements for rest. They do not in any way compromise safety.”

For their part, after the CIRB’s decision came down, the TCRC announced they would provide a 72-hour advance notice of strike action, as required if no contract agreement is reached. The union voted overwhelmingly in favour (approximately 97.8%) of a strike mandate earlier this year. Their stated key issues remain safety and rest periods along with the parameters of the proposed mandated work periods and employee relocation.

While Canada has had rail strikes in the past, never before have we seen labour negotiations and the potential for work stoppages occur for both railroads at the same time. Previous rail labour disruptions occurred separately with shippers able to divert commodities to the working rail road instead. Rail service continued, but at a much slower pace.

A full-scale shutdown of Canada’s national railways would have immediate and severe consequences for Canadian shippers. An approximate $380 billion worth in goods are shipped on Canada’s railways every year, including an estimated 75% of Canadian fertilizer and close to 85% of our agricultural products.