Both Canadian national railways have threatened to lock out employees if separate labour negotiations with the Teamsters Canada are not resolved by 12:01 a.m. on Aug. 22.
CN Railway has formally asked the federal government to enter into binding arbitration in its dispute with the Canadian Teamsters. CN Railway said in a media release that the request is “to protect Canada’s economy.”
CN said it would have “no choice” but to begin a phased network shutdown and ultimately a lockout if the dispute was not resolved soon.
Canadian Pacific Kansas City Railway (CPKC) said in a media release that it was publishing the lockout notice to give customers and its supply chain time to plan for the work stoppage. The railroad company added that it has offered to enter into binding arbitration with the Teamsters.
The news comes after the Canada Labour Relations Board (CIRB) ruled that rail service is not considered “essential” under the Canada Labour Code, and therefore CN Rail and CPKC are not required to maintain service in the event of a strike or lockout.
About 9,300 employees at both railroads, represented by Teamsters Canada, are currently under strike orders. The CIRB has given both sides a 13-day cooling off period, meaning no strike action can be taken until August 22nd.
In May, the then Labour Minister Seamus O’Regan asked the CIRB to consider whether services should continue during strikes and lockouts.
In its ruling released Friday, the CIRB said that while what constitutes an “essential service” may seem self-evident, the definition in the Canada Labour Code is specific.
The CIRB said it needed to determine whether the disruption of rail services posed an immediate and significant threat to public health and safety under the law.
The Commission concluded that the work stoppage did not pose an immediate threat to public safety because no such threats had been observed in previous work stoppages involving the parties, and neither party presented compelling evidence to the contrary.
“There is no doubt that the suspension of work at CPKC/CN would cause inconvenience, economic hardship and, as some groups and organizations have suggested, could damage Canada’s global reputation as a reliable trading partner,” the CIRB’s decision read.
“Such potential harms are by no means minor, but they are not factors the Commission should take into account when dealing with a referral under section 87.4. [Canadian Labour Code]”
Labour Minister Stephen MacKinnon wrote in a post on social media platform X that those involved were accountable to Canadians.
“I urge both parties to remain at the negotiating table and continue productive, substantive discussions that meet our current needs. A negotiated agreement is the best way forward,” he wrote.
It is the government’s responsibility to ensure the health and safety of Canadians.
It is up to the union and employer to negotiate an agreement at the bargaining table.
My statement on today’s Canada Labour Relations Board decision: pic.twitter.com/vZELy88DiO
McKinnon met with both parties on Aug. 4. At the end of the meeting, he said the parties agreed to resume negotiations on Aug. 7 with a federal mediator present.
CN Rail said the union has “not engaged in meaningful negotiations” since talks resumed.
In a media statement, Teamsters Canada said it would give 72 hours’ notice if it went on strike.
“From the beginning, rail workers have only wanted a fair and equitable agreement. Unfortunately, both rail companies are demanding concessions that could tear families apart and put rail safety at risk. Rail workers have fought for a safer, more humane industry for decades and we will not accept backsliding,” Paul Boucher, president of the Teamsters Canadian Railway Congress, said in a statement.
Business groups call on Trudeau to act
The Business Council of Canada released a letter calling for immediate federal intervention to stop the rail labour dispute. The letter, signed by nearly 100 business and industry groups, was addressed to Prime Minister Justin Trudeau, MacKinnon and Transport Minister Pablo Rodriguez.
“Rail is the backbone of Canada’s economy. Businesses of all sizes and sectors depend on it to move goods that are essential to their operations and support millions of Canadians’ jobs,” Goldie Hyder, president and CEO of the Business Council of Canada, said in an emailed statement.
“In addition to the overall damage to the economy and jobs, a national strike would drive up the prices of essential goods at a time when Canadians are already facing hardship to buy.”
The business council said in its letter that $380 billion worth of goods is moved on Canadian rail every year.
The Canadian Manufacturers and Exporters (CME) has also signed the business council’s letter, calling on the House of Commons transportation committee to hold an emergency meeting next week to examine the impact of the rail shutdown on the wider economy.
CME says the rail shutdowns are costing manufacturers an average of $275,000 a day in lost production and increased expenses.
