Hopes of a new labour agreement between both the Canadian National (CN) and Canadian Pacific Kansas City (CPKC) railroads and the Teamsters Canada Rail Conference (TCRC) are fading fast. Both railroads have been negotiating for a new contract with the TCRC for months now. On 18 August CN said that “Despite negotiations over the weekend, no meaningful progress has occurred, and the parties remain very far apart.”

Canada is no stranger to strikes in the transport sector, but it has never had a situation where the Teamsters at both its Class I railroads have gone on strike at the same time. In the past the Teamsters negotiated with each railroad in different years, but in 2022 CN obtained a one-year extension its contract so that both railroads are negotiating at the same time. In June the Teamsters proposed staggering the negotiations to avoid simultaneous disruption shutting down the whole network, but the railroads did not agree.

Both sides have deep differences over crewing and fatigue management issues. In 2022 Transport Canada published new regulations around fatigue management. Partly in response, CN and CP are seeking changes to the shift system, replacing existing practices with a “modernised agreement”.  Paul Boucher, president of the TCRC, said these proposals would mean more days out of province for its members and would “drag working conditions back to another era.”

Back in May the Teamsters voted for strike mandates, but these were put on hold when the Minister of Labour requested clarity from the Canadian Industrial Relations Board (CIRB) on whether or not any rail services are essential and therefore must be maintained during a labour disruption. While waiting for that decision the TCRC declined CN’s offer of binding arbitration and voted for a second strike mandate. Separately both railroads have issued lockout notices.

The CIRB has now ruled that rail services are not an essential service that would result in a threat to the safety or the health of the public within the meaning of the Canada Labour Code. Back-to-work legislation is still an option, but the Federal Liberal Government is reluctant to take this route, and as a minority government may not be able to find a majority to push it through.

At the time of writing both railroads are preparing for a full network shutdown on 22 August. They have stopped accepting refrigerated and hazardous cargo and are no longer allowing international intermodal containers into their networks.

“CN must continue with the progressive and planned shutdown of its network, as we remain under the threat of an unpredictable strike notice. This planned shut down helps to ensure the safety of the communities in which we operate and the safety of our customers’ goods, and to optimise the network’s recovery following a labour disruption,” CN said in a statement.

The situation where both railroads are closed simultaneously is causing mild panic among exporters, retailers and across the commercial sector. “A shutdown of Canada’s two main railway companies would be a one-two punch to retailers that could result in empty shelves across the country” the Retail Council of Canada said in a statement. The Wheat Growers Association is calling on the government to initiate a mediated settlement as a minimum, saying a rail disruption at the height of the wheat harvest “will cause devastating harm to Canada’s food security both domestically and internationally.”

The Federal Government, however, continues to be reluctant to intervene. Today the Minister of Labour, Steven MacKinnon, issued a statement saying “These collective bargaining negotiations belong to CN Rail, CPKC and TCRC workers alone – but their effects will be borne by all Canadians. 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’ effects to be equal to the trust conferred on them.”

A rail strike will have a large impact on Canada’s container ports. Almost all of the container volume at Prince Rupert moves by rail on the landside, while at Montreal around 45% of all cargo is moved by rail. US shippers have already taken action to route containers away from Vancouver and Prince Rupert.

Both CN and CPKC have US operations and are continuing accept cargo originating and destinating within the US, as well as interchange with US railroads for US domestic cargo.

Hopes of a new labour agreement between both the Canadian National (CN) and Canadian Pacific Kansas City (CPKC) railroads and the Teamsters Canada Rail Conference (TCRC) are fading fast. Both railroads have been negotiating for a new contract with the TCRC for months now. On 18 August CN said that “Despite negotiations over the weekend, no meaningful progress has occurred, and the parties remain very far apart.”

Canada is no stranger to strikes in the transport sector, but it has never had a situation where the Teamsters at both its Class I railroads have gone on strike at the same time. In the past the Teamsters negotiated with each railroad in different years, but in 2022 CN obtained a one-year extension its contract so that both railroads are negotiating at the same time. In June the Teamsters proposed staggering the negotiations to avoid simultaneous disruption shutting down the whole network, but the railroads did not agree.

Both sides have deep differences over crewing and fatigue management issues. In 2022 Transport Canada published new regulations around fatigue management. Partly in response, CN and CP are seeking changes to the shift system, replacing existing practices with a “modernised agreement”.  Paul Boucher, president of the TCRC, said these proposals would mean more days out of province for its members and would “drag working conditions back to another era.”

Back in May the Teamsters voted for strike mandates, but these were put on hold when the Minister of Labour requested clarity from the Canadian Industrial Relations Board (CIRB) on whether or not any rail services are essential and therefore must be maintained during a labour disruption. While waiting for that decision the TCRC declined CN’s offer of binding arbitration and voted for a second strike mandate. Separately both railroads have issued lockout notices.

The CIRB has now ruled that rail services are not an essential service that would result in a threat to the safety or the health of the public within the meaning of the Canada Labour Code. Back-to-work legislation is still an option, but the Federal Liberal Government is reluctant to take this route, and as a minority government may not be able to find a majority to push it through.

At the time of writing both railroads are preparing for a full network shutdown on 22 August. They have stopped accepting refrigerated and hazardous cargo and are no longer allowing international intermodal containers into their networks.

“CN must continue with the progressive and planned shutdown of its network, as we remain under the threat of an unpredictable strike notice. This planned shut down helps to ensure the safety of the communities in which we operate and the safety of our customers’ goods, and to optimise the network’s recovery following a labour disruption,” CN said in a statement.

The situation where both railroads are closed simultaneously is causing mild panic among exporters, retailers and across the commercial sector. “A shutdown of Canada’s two main railway companies would be a one-two punch to retailers that could result in empty shelves across the country” the Retail Council of Canada said in a statement. The Wheat Growers Association is calling on the government to initiate a mediated settlement as a minimum, saying a rail disruption at the height of the wheat harvest “will cause devastating harm to Canada’s food security both domestically and internationally.”

The Federal Government, however, continues to be reluctant to intervene. Today the Minister of Labour, Steven MacKinnon, issued a statement saying “These collective bargaining negotiations belong to CN Rail, CPKC and TCRC workers alone – but their effects will be borne by all Canadians. 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’ effects to be equal to the trust conferred on them.”

A rail strike will have a large impact on Canada’s container ports. Almost all of the container volume at Prince Rupert moves by rail on the landside, while at Montreal around 45% of all cargo is moved by rail. US shippers have already taken action to route containers away from Vancouver and Prince Rupert.

Both CN and CPKC have US operations and are continuing accept cargo originating and destinating within the US, as well as interchange with US railroads for US domestic cargo.