By Bill Stephens | August 9, 2024
Following ruling by Canada Industrial Relations Board, CN, CPKC say they will lock out members of Teamsters Canada Rail Conference without contract settlement or participation in binding arbitration
OTTAWA — The Canada Industrial Relations Board has cleared the way for a potential rail work stoppage that could begin as soon as Aug. 22 if the Canadian railways can’t reach an agreement with the union that represents train crews.
Canadian National and Canadian Pacific Kansas City subsequently said they would lock out members of the Teamsters Canada Rail Conference on that date without a settlement or an agreement by the union to participate in binding arbitration.
The CIRB ruled today that a work stoppage on Canadian National and CPKC would not cause an immediate threat to public health and safety. The agency had put a potential strike on hold while it evaluated whether certain commodities must keep moving during a strike or lockout.
“Today, the Canada Industrial Relations Board ruled that no activities need to be maintained in the event of a strike or lockout at CN or CPKC,” Labor Minister Steven MacKinnon said in a statement. “The CIBC has also imposed a 13-day cooling off period before a strike or lockout can occur.”
MacKinnon called on the union and railways to continue to hold contract talks. “A negotiated settlement is the best way forward,” he said.
Canadian National — saying it had lost faith in the bargaining process and that a negotiated deal was no longer possible without a willing partner — this afternoon asked the labor minister to order binding arbitration in order to protect Canada’s economy from the impact of a strike.
CN also said it would be forced to lock out workers at 12:01 a.m. on Aug. 22, matching the action CPKC said it would take in a statement released this afternoon.
Earlier, the TCRC cheered the industrial board’s decision. “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,” the union said in a statement.
“Workers’ right to strike had been temporarily suspended pending today’s decision by the CIRB. This effectively robbed the union of leverage,” the TCRC said. “Absent the threat of a work stoppage, neither company had been willing to compromise or show any flexibility in their demands. With this decision, if a negotiated settlement cannot be reached, the earliest a work stoppage at CN and CPKC can occur is August 22nd, at 00:01.”
The union said it would provide a 72-hour advance notice of a strike action, as required, if no contract agreement is reached. TCRC represents engineers and conductors on both railways, as well as rail traffic controllers on CPKC. A strike would affect commuter operations in Vancouver, Toronto, and Montreal, which rely on CPKC dispatchers.
The railways resumed separate contract talks with union representatives on Wednesday, following a meeting on Monday with Canada’s labor and transport ministers. The talks were held with the assistance of federal officials.
CN and CPKC have long said they hope to avoid a strike and reach negotiated settlements with the TCRC.
The union says the main sticking points at the bargaining table are company demands, not union proposals. The union claims that both railways want concessions on crew scheduling, rail safety, and fatigue management.
“CPKC remains committed to doing its part to avoid a work stoppage,” the railway said today. “In response to opposition from TCRC leadership, CPKC has advised the union representing conductors and locomotive engineers that we will conditionally withdraw the offer for a new modernized, time-based collective agreement. That time-based agreement proposal was intended to address the union’s concerns related to work and time off scheduling, while allowing significant wage increases and additional customer service flexibilities.
“CPKC will focus on a status quo-style contract renewal covering three years with competitive wage increases that are consistent with recent settlements with other railway unions and maintains the status quo for all work rules,” the railway said. “The status quo-style offer fully complies with new regulatory requirements for rest and does not in any way compromise safety.”
“All stakeholders want an end to this needless uncertainty as rapidly as possible so that we can continue serving the North American economy,” the railway said. “Stability could be restored today if the TCRC would accept CPKC’s offer to resolve the current labor dispute through binding interest arbitration.”
“Since the beginning of the year, CN has made four offers to the TCRC,” the railway said today. “The offers included points on wages, rest, and labour availability while remaining fully compliant with the government-mandated rules overseeing duty and rest periods. None of CN’s offers compromised safety in any way. The latest offer proposed third-party arbitration. The union rejected all offers and has made no counter-proposals.
“Supply chains require predictability to function properly. Unfortunately, even the possibility of an unpredictable labor disruption and subsequent disorderly shutdown creates a safety risk and unacceptable uncertainty for industries that depend on rail. Prolonged uncertainty will impact consumers and workers across industries and across Canada,” CN said.
Note: Updated at 1:29 p.m. Central with comment from Canada’s labor minister, at 3:52 p.m. with comment from CPKC, and at 4:21 p.m. with comment from CN.
