The Teamster Canada Rail Conference (TCRC), the union representing over 9,000 Canadian National (CN) and Canadian Pacific Kansas City (CPKC) engineers, conductors, and yard workers in Canada, has announced they will hold a strike vote from April 8 to May 1, as the union and management for both companies remain far apart on new contracts.

After being unable to reach agreements during initial talks last fall, federal mediators were brought in on March 1 to help with negotiations. Two of the key outstanding issues are CN and CPKC’s desire to move away from the traditional mileage-based pay system for train and engine crews and replace it with an hourly wage system and the establishment of predictable work schedules for train crew to align with Transport Canada’s Duty and Rest Period Rules introduced last year.

During this conciliation period over the next month, both sides are expected to continue meeting to try and reach a negotiated settlement. Combined, CN and CPKC own and operate over 75% of Canada’s rail network. Separate collective bargaining agreements between each respective company and the TCRC expired at the end of 2023.

After the challenges faced by our transportation and shipping industries of the past several years; the natural disasters in Western Canada, a global pandemic, and other labour disruptions, the last thing we need now is further labour unrest and uncertainty.

A strike of this size and nature, even if only for a short period, would likely cause significant disruptions to Canada’s recovering supply chain. And while grain cargo, previously deemed an essential service by the Federal government, would still continue to see movement on the rails, slower and fewer deliveries to the West Coast would be a certainty.

If the strike vote passes, the earliest potential date for a walkout or lockout on CN and CPKC in Canada is May 22, 2024.