Canada Rail Strike Updates
August 23 – EDITED
After less than 24 hours, the lockout of Canada’s rail carriers came to an end late on August 22. Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC) ended their lockout after Canada’s Minister of Labour and Seniors Steven MacKinnon announced that he directed the Canada Industrial Relations Board (CIRB) to impose final binding arbitration that would have the Teamsters Canada Rail Conference (TCRC) finalize new deals with both companies. MacKinnon also directed the CIRB to extend the term of the union’s contracts with each railroad until a new collective agreement is signed. The previous deal expired last December.
The CIRB is an independent tribunal that resolves workplace disputes and appeals related to federally regulated workplaces. Their main responsibilities are to interpret and administer the Canada Labour Code and to contribute to changing labor laws that are unlawful.
August 22
After months of failed negotiations, railway union workers were locked out by Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC), resulting in a shutdown by the country’s rail carriers. This is leading to far-reaching disruptions across the supply chain.
Here’s the background:
- The previous labor agreement had expired at the end of December 2023.
- CN and CPKC both issued warnings on August 9 stating that lockouts were imminent unless new contracts could be secured.
- This announcement followed months of on-and-off bargaining between the rail companies and approximately 9,300 conductors, engineers, and yard workers represented by the Teamsters Canada Rail Conference (TCRC).
- The Canada Industrial Relations Board had determined that the work performed by these railways does not constitute an essential service, paving the way for a complete work stoppage without any legal obligation.
- Last week, CPKC and CN took the first step of a phased shutdown of their respective networks with an embargo on shipments of hazardous items.
- An emergency meeting was held on August 20 between Canadian Minister of Labour and Seniors Steven MacKinnon and union and railroad representatives, but no there was still no resolution.
- Shippers and industry groups had also urged a quick resolution to keep Canada’s railroads running, including asking for government intervention.
- Even though Canadian officials feel critical supplies – such as fuel and water – could be transported via trucking, BC Trucking Association CEO Dave Earl has stated, “There is no possibility trucking can fill the gap of any labour disruption on railways.”
On a daily basis, Canadian railroads transport more than 900,000 metric tons of goods, which is why there is little optimism in the country’s trucking sector being able to supplement the situation.
