Canadian Board's Decision Paves Way Toward Possible Rail Strike on Aug. 22

The Canada Industrial Relations Board determined on Aug. 9 that stopping freight rail service in Canada would not result in an immediate and serious danger to the safety or health of the public. This means that members of the Teamsters Canada Rail Conference (TCRC) could go on strike as early as Aug. 22 should union members and the two Canadian freight railways, Canadian Pacific Kansas City (CPKC) and Canadian National (CN) fail to negotiate a new labor contract.

"As most Members are now aware, the CIRB’s decision was released today, and advised that there were no essential services to be maintained. The Board further advised that the Company and the Union are now in a position to serve legal notice for strike or lockout to commence at 0001 EST August 22, 2024," TCRC said in an update.

The update also said that CN and CPKC indicated that they would locking union members out on Aug. 22 if a labor agreement still can't be reached by then.

"While your Bargaining Committee is committed to negotiating a new Collective Agreement, we must move forward and prepare for the work stoppage. We would ask that everyone assist the Local Executive and Strike Captains in this necessary procedure. Your Bargaining Committee will provide updates and support as needed," TCRC said.

Indeed, both CN and CPKC confirmed the industrial board's decision in separate announcements Aug. 9. Both also indicated that they would begin to wind down operations ahead of the Aug. 22 deadline should no contract agreement be reached. This wind down is necessary to ensure that rail cars carrying hazardous materials are able to exit the rail network safely.

"CPKC is acting to protect Canada’s supply chains, and all those who depend on them, from the more widespread disruption that would be created should a work stoppage occur during the fall peak shipping period. Delaying resolution to this dispute only makes things worse, causing more disruption and damage to Canada’s international reputation as a reliable trading partner," CPKC said Aug.9 on its decision to lock out union members on Aug. 22. The railway wants TCRC to accept binding interest arbitration to resolve the negotiations impasse.

"CPKC provides this public notice to mitigate uncertainty and give our customers and supply chains proper time to plan for a safe and orderly shutdown of railway operations," CPKC said.

CN said it is asking the Minister of Labour to require binding arbitration to prevent any work stoppage.

"Since the beginning of the year, CN has made four offers to the TCRC. The offers included points on wages, rest, and labour availability while remaining fully compliant with the government-mandated rules overseeing duty and rest periods. None of CN's offers compromised safety in any way. The latest offer proposed third-party arbitration. The union rejected all offers and has made no counter-proposals," CN said.

"Supply chains require predictability to function properly. Unfortunately, even the possibility of an unpredictable labour disruption and subsequent disorderly shutdown creates a safety risk and unacceptable uncertainty for industries that depend on rail. Prolonged uncertainty will impact consumers and workers across industries and across Canada."

The last labor agreements between TCRC and the Canadian freight railways expired on Dec. 31, 2023, according to CPKC.