Federal intervention fails to avert Canada railway union's strike notice

Federal intervention fails to avert Canadian railway union's strike notice

David Marion Photography/ Shutterstock

There is no end in sight to the railway labour dispute involving Canada’s two largest railway companies.

This morning, the Teamsters Canada Rail Conference (TCRC) served Canadian National Railway (CNR) with a 72-hour strike notice effective 10 am ET (7 am PT) on Monday, August 26, 2024, at which point the union’s approximately 6,500 members will withdraw from their work.

“We do not believe that any of the matters we have been discussing over the last several days are insurmountable and we remain available for discussion in order to resolve this matter without a further work stoppage,” reads the notice sent to CNR.

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This follows federal Minister of Labour Steve MacKinnon’s decision yesterday to invoke its authority under legislation to enable the federal government to intervene in the labour dispute.

This intervention, a direction to the Canada Industrial Relations Board (CIRB), requires the CNR and Canadian Pacific Kansas City (CPKC) and the union to enter into binding arbitration and requires workers to go back to work and restart the railway operations. Additionally, the CIRB was directed to temporarily extend the expiring term of the current collective agreements until new multi-year contracts are signed.

“These collective bargaining negotiations belong to these parties, but their effects and impacts to the current impasse are being borne by all Canadians, and there is an impasse. As the Minister of Labour, I’m using my authorities under the Canada Labour Code to secure industrial peace and deliver the short- and long-term solutions that are in the national interest,” said MacKinnon in yesterday’s press conference.

Immediately after MacKinnon’s announcement, on the same day, CNR ended the lockout of the union.

However, both companies are now accusing the TCRC of ignoring the federal government’s direction.

“While CN is focused on its recovery plan to get back to powering the economy, the Teamsters are focused on returning to the picket line and shutting down the economy, impacting people and jobs across the country. Over the last nine months, CN has negotiated in good faith,” reads CNR’s statement today after receiving the union’s strike notice.

CPKC also shared that after receiving the federal government’s direction, the CIRB convened an urgent session on Thursday evening. The meeting was expected to discuss restarting services, but CPKC asserts that the union instead decided to challenge the federal government’s direction.

“Unfortunately, the Teamsters Canada Rail Conference (TCRC) representing the Train and Engine division and Rail Canada Traffic Controller division refused to discuss any resumption of service and instead indicated that they wish to make submissions to challenge the constitutionality of the Minister’s direction, as well as the CIRB’s discretion to proceed with any order,” reads CPKC’s statement on Thursday evening.

“While the Minister directed that the CIRB proceed expeditiously, any decision by the CIRB on the resumption of service will be delayed. CPKC remains prepared to resume service as soon as it is ordered to do so by the CIRB.”

In a statement to media on Friday morning, Paul Boucher, the president of the TCRC, charged at the federal government for intervening into the labour dispute.

The union accuses the companies of pushing changes that weaken existing protections relating to rest periods and scheduling, which they assert could impact safety.

“By sidestepping the collective bargaining process and ordering binding arbitration, the federal government has undermined the foundation on which labour unions work to improve wages and working conditions for all Canadians. Bargaining is also the primary way our union fights for rail safety — all considerations that outweigh short-term economic concerns,” said Boucher.

In an unprecedented move, both railways shut down at 12:01 am ET on Thursday, August 22, 2024 (9:01 pm PT on Wednesday, August 21). The union representing thousands of freight railway workers served a 72-hour strike notice to CPKC last weekend, and both CPKC and CNR subsequently issued notices to TCRC indicating that it will lock out its members at the same time unless an agreement or binding arbitration is achieved ahead of time.

This now means TCRC has served strike notices to both CPKC and CNR over two separate occasions within less than a week.

The union and the two companies have been engaged in separately unsuccessful contract negotiations for many months.

Between both companies, the union represents a combined total of nearly 10,000 members who work in crucial positions such as locomotive engineers, conductors, train and railway yard workers, and railway traffic controllers.

With much of Canada’s freight moved by the railways owned and operated by CNR and CPKC, the shutdown of the lines over a prolonged period would cost the Canadian economy billions of dollars, having a profound impact on international trade, logistics, supply chains, and manufacturing, and leading to added transportation costs for businesses to find an alternative way of transporting goods.

Canada’s major ports also depend on freight railways for a significant proportion of how cargo and goods are loaded and unloaded on ships. The railway stoppages could quickly congest the major ports of Vancouver, Prince Rupert, and Montreal.

The historic shutdown of Canada’s freight railways has also curtailed the public transit commuter rail services of the West Coast Express in Vancouver, Go Train in Greater Toronto, and Exo in Greater Montreal, as these services lease track time from the companies. Some VIA Rail services within Ontario have also been impacted.

Depending on how long the railways are shut down, it could take weeks for the railways, ports, warehouses, and other logistics operations to catch up on the backlog.

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