Prime Minister Justin Trudeau indicated Thursday that his government would soon provide an update on its plans to find a “right solution” to the historic rail closures that threaten to upend supply chains.
“It’s a concern for people across Canada and we’re not taking this lightly,” he said during a visit to Quebec’s Eastern Townships region.
“I will provide more details soon about what we are doing to ensure that the right solutions for the economy are found quickly.”
After months of tension and increasingly bitter labor negotiations, freight traffic on the two biggest rail networks came to a simultaneous halt on Thursday morning, the first time that both railways have been shut down at the same time.
Canadian National Railway (CN) and Canadian Pacific Kansas City Railway (CPKC) have locked out 9,300 engineers, conductors and yard workers after failing to agree on new contracts by a midnight deadline.
Freight traffic on Canada’s two biggest railways was halted early Thursday, and Prime Minister Justin Trudeau said “this is a situation that is causing concern for Canadians across the country and that the federal government is not taking lightly.”
The deadlock also affects tens of thousands of commuters in Toronto, Montreal and Vancouver who travel on tracks owned by CPKC: With no traffic controllers to give orders, passenger trains can’t move on the tracks.
Pressure has been growing for weeks from industry groups and the government to end the deadlock in negotiations, and now that the strike has begun, calls to forge a solution are likely to intensify.
Together, these companies move $1 billion worth of freight every day, according to the Canadian Railway Association, and many trips were halted in advance to avoid stranding cargo.
Negotiations break down
The parties continued negotiations late into the night on Wednesday at hotels in Montreal and Calgary, with talks calling off just before midnight.
Negotiations were held separately between each company and the Teamsters, who represent 6,000 CN workers and 3,300 CPKC workers.
Both sides have accused the other of not negotiating seriously.
Jonathan Abecassis, CN Rail’s director of public and media relations, said without an agreement or binding arbitration, the company has “no choice” but to lock out employees.
“The Teamsters have shown no desire for a negotiated settlement and want to hold Canada’s supply chain hostage. I think this is irresponsible and reckless and needs to end as soon as possible,” he told CBC. the current.
“The Teamsters have shown no urgency or willingness to reach an agreement that is good for their workers, their company or their economy.”
Abecassis has repeatedly called for the federal government to intervene through binding arbitration – a process in which a third party reviews both sides’ claims and proposes a solution for employees to vote on.
“They simply feel there is no one to negotiate with. You can’t make a deal with an empty seat at the table,” he said.
The CPKC is also seeking binding arbitration, saying the union is making “unrealistic demands.”
Christopher Monette, public affairs director for Teamsters Canada, rejected those versions of events and accused the two railroads of conspiring to orchestrate the shutdown in order to secure concessions at the negotiating table.
“This is an employer-led strike and the main issue is not the union’s proposals but the company’s demands for concessions,” he said. the current.
He said the union was fighting for a “more humane rail industry”.
The union is demanding improved wages, benefits and working hours, arguing that the company’s proposals could lead to fatigue and safety hazards.
Abecassis said CN adheres to government work and rest regulations that were established in cooperation with unions.
“It’s a bit confusing because the reality is that CN can’t offer anything that isn’t within the framework of these rules,” he said.
“Both companies are taking aim at fatigue protection provisions in our collective bargaining agreements,” Monette said. “Our collective bargaining agreements provide protections that go beyond the federal minimum.”
Business Organizations Seeking Binding Arbitration
Business groups are also calling for the government to intervene by imposing binding arbitration and banning strikes and lockouts as the process gets underway.
In a statement, Perrin Beatty, president and CEO of the Canadian Chamber of Commerce, criticized the federal government’s role in the dispute, saying it had opportunities to act but did not.
“Canadians are already struggling with the rising cost of living, and this government needs to show decisive leadership that puts Canadians’ families and livelihoods first,” the statement said.
Canadian National Railway and Canadian Pacific Kansas City, Canada’s largest rail companies, had 9,300 employees locked out and trains across the country were halted.
“The Minister of Labour must use all available resources to immediately resolve this dispute through binding arbitration,” the statement continued.
Labor Minister Steve McKinnon’s office provided few details, saying only that they have been “meeting all day on this very important issue.”
NDP Leader Jagmeet Singh reiterated his party’s longstanding opposition to back-to-work legislation.
“Canada’s governments are succumbing to corporate greed, resulting in labour disputes and workers struggling to get fair wages and safe working conditions,” he said in a media statement Thursday.
“This does the opposite and hurts everyone except the billionaires at the top.”
The federal Conservative Party did not respond to CBC’s request for comment.
Concerns over cargo congestion
Industries affected by the strike include agriculture, mining, energy, retail, auto manufacturing and construction. US railroads have also been forced to refuse freight to Canada.
Shippers south of the border also rely on Canada’s two main railroads, whose tracks stretch all the way to the Gulf of Mexico and, in the case of CPKC, several Mexican ports.
Meanwhile, Canadian port authorities are concerned that containers could pile up on wharves without their cargo being moved, causing congestion on shipping lanes and forcing some shippers to reroute to terminals in the United States.
More than 32,000 rail commuters in Toronto, Montreal and Vancouver will also have to find new ways to get to the office.
Lines affected by the potential work stoppage include TransLink’s West Coast Express in the Vancouver area, Hamilton GO station on Metrolinx’s Milton and Lake Shore lines in the Greater Toronto area, and Exo’s Candiac, Saint-Jérôme and Vaudreuil/Hudson lines in the Montreal area.
Here’s what Just Asking wants to know: Do you have a question about the rail strike? What would you like to know about the impact on Canadian supply chains and daily life? Please provide us with the details. This form Please send in your questions before the show on August 24th.
