Ottawa Urging Rail Companies, Union to Work Harder to Prevent Strike

CN rail trains are shown at the CN MacMillan Yard in Vaughan, Ont., on June 20, 2022. The Canadian Press/Nathan Denette

The federal government is calling on the nation’s two leading railway companies and the Teamsters union to step up their efforts to prevent a historic strike with the potential to paralyze Canada’s economy.

The Canadian National Railway Co. and Canadian Pacific Kansas City Ltd. (CPCK) both face the potential for a work stoppage Aug. 22 if they fail to negotiate agreements with the thousands of employees represented by the Teamsters Canada Rail Conference (TCRC).

Federal Labour Minister Steven MacKinnon is urging both sides to intensify their efforts to finalize an agreement to keep the collective workforce of 9,300 railway workers on the job.

“These collective bargaining negotiations belong to CN Rail, CPCK, and TCRC workers alone—but their effects will be borne by all Canadians,” MacKinnon said in an Aug. 19 social media post.

“The parties must do the hard work necessary to reach agreements at the bargaining table and prevent a full work stoppage. Canadians expect the parties’ efforts to be equal to the trust conferred on them.”

MacKinnon has the authority to mandate binding arbitration between the union and railway companies, but has yet to indicate he will take such an action.

The Canadian Federation of Independent Business (CFIB) says a rail shutdown will “paralyze the economy,” and is urging the federal government to step in to prevent a strike.

“Politicians still have the power to change labour laws,” CFIB vice-president of national affairs Jasmin Guenett said in an Aug. 19 press release.

“CFIB continues to call on the government to make ports and rails an essential service, so they remain fully operational at all times.”

Strike Notice

CPKC workers issued a notice of strike that would see them walk off the job as of 12:01 a.m. ET on Aug. 22, while CN has declared its intention to lock out employees at the same time, unless an agreement or binding arbitration is successfully negotiated.

CN said despite negotiations over the weekend, “no meaningful progress has occurred, and the parties remain very far apart.”

“Unless there is an immediate and definite resolution to the labour conflict, CN will have no choice but to continue the phased and progressive shutdown of its network which would culminate in a lockout,” the company said in a press release.

“CN must continue with the progressive and planned shutdown of its network, as we remain under the threat of an unpredictable strike notice.”

The two railway companies have been halting shipments in anticipation of the possible shutdowns. CN schedules showed that it started barring container imports from U.S. partner railways Aug. 16, according to The Canadian Press. The two companies have already halted shipments that need cooler temperatures, such as meat and medicine.

CPKC did not respond to a request for comment by publication time.

“All stakeholders want an end to this needless uncertainty as rapidly as possible so that we can continue serving the North American economy,” CPCK previously said in an Aug. 9 press release. “Stability could be restored today if the TCRC would accept CPKC’s offer to resolve the current labour dispute through binding interest arbitration.”

The union said it was “forced” to serve strike notice to the company to protect workers.

“We do not take this decision lightly, but CPKC’s reckless actions have forced our hand,” said TCRC president Paul Boucher in a press release. “By unilaterally locking out our members and changing the terms of the collective agreements, they are stripping our members of essential protections.”

Rail lines carry more than $1 billion worth of goods each day, according to the Railway Association of Canada. More than half of the country’s exports travel by rail.

The Canadian Press contributed to this report.