Market Matters Blog

On Aug. 9, the Canada Industrial Relations Board (CIRB) ruled "a work stoppage on Canadian National (CN) and Canadian Pacific Kansas City (CPKC) would not cause an immediate threat to public health and safety." The federal government asked the CIRB in early May to look at whether the strike would have any safety implications, thus delaying any strike action until at least 72 hours after the board handed down a decision.

According to the Journal of Commerce, the CIRB ruled on Aug. 9 that "Commodities transported on Canadian rails are not considered essential services because 'reasonable alternatives' exist through long-haul trucking." That ruling created the likelihood of a strike or lockout by Aug. 22.

Canadian railways haul more than $350 billion worth of goods and more than half of the country's total exports each year, according to the Railway Association of Canada.

The Chemistry Industry Association of Canada (CIAC) issued a statement saying it is "disappointed with the decision by the CIRB to not recognize the essential goods that are moved by Canada's Class 1 railroads including safety critical goods from Canada's chemistry sector."

As a reminder, TCRC and Train & Engine (T&E) division represents CPKC's roughly 3,200 locomotive engineers, conductors and train and yard workers, and the TCRC and Rail Canada Traffic Controllers (RCTC) division represents approximately 80 rail traffic controllers, all in Canada. TCRC union represents approximately 6,000 conductors, conductor trainees, yard coordinators and locomotive engineers across CN's network in Canada.

It didn't take very long before the CPKC issued a lockout notice, stating they are locking out the TCRC RTEs as of 0001 EST, and the RTCs as of 0001 MST, on Aug. 22. Shortly after that, the CPKC then notified the TCRC and Federal Mediation and Conciliation Service (FMCS) of their intention to lock out the above-mentioned workers, according to the TCRC notice to its members.

Within their press release, the CPKC stated the following: "In response to opposition from TCRC leadership, CPKC has advised the union representing conductors and locomotive engineers that we will conditionally withdraw the offer for a new modernized, time-based collective agreement."

The CN responded on their website saying, "While CN is willing to keep negotiating with the TCRC, the Company has lost faith in the process and is concerned that a negotiated deal is no longer possible without a willing partner. Therefore, the Company formally requests the Minister of Labour's intervention. Unless there is immediate and meaningful progress at the negotiating table or binding arbitration, CN will have no choice but to begin a phased and progressive shutdown of its network, starting with embargoes of hazardous goods, which would culminate in a lockout at 00:01 Eastern Time on Aug. 22."

Teamsters Canada spokesperson Christopher Monette released a statement on the company's X social media account saying, "The CPKC announcement was unexpected and needlessly antagonizing given there were 13 days of negotiations left before Aug. 22. Contrary to the CPKC's assertions, their latest proposals include significant demands for concessions, such as the removal of critical fatigue countermeasures. And contrary to CN's claims, the company has not shown any flexibility or willingness to compromise at the bargaining table."

Teamsters Canada added, "The CN and CPKC have a responsibility to their employees and all Canadians, and we urge these companies to act in a manner that reflects this duty."

CPKC Lockout Notice: https://www.cpkcr.com/…

CN Notice: https://www.cn.ca/…

CIAC statement: https://canadianchemistry.ca/…

DTN July 15 story with more information prior to the CIRB taking over: https://www.dtnpf.com/…

Mary Kennedy can be reached at Mary.Kennedy@dtn.com

Follow her on social platform X @MaryCKenn

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