Market Matters Blog

It has been over 10 months since the Teamsters Canada Rail Conference (TCRC) began negotiations with the Canadian Pacific Kansas City (CPKC) and Canadian National (CN) railways. On Dec. 31, 2023, the collective bargaining agreement expired and was extended under Canadian law until the parties reach an agreement.

TCRC and Train & Engine (T&E) division represent 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.

Given all parties remained far apart on a resolution, the TCRC union approved a strike on May 1, meaning the union could have begun a work stoppage on May 22. However, the federal government asked the Canadian Industrial Relations Board (CIRB) in early May to look at whether the strike would have safety implications. This delayed any strike action until at least 72 hours after the board hands down a decision, according to an article on the Canadian Cattlemen's website.

"Agriculture groups have said a strike could bring grain movement to a halt, which would mean financial losses for farmers," noted the article.

On their website, TCRC told members, "As you are probably aware, Federal Labour Minister Seamus O'Regan has requested that the CIRB assess whether the strike could pose safety implications. He stated that the request was prompted by concerns from industry groups. The board is set to examine what, if any, critical shipments must continue in the event of a strike or lockout. The Union and Company submissions were submitted on May 21 and rebuttals must be submitted by May 31. It is unclear exactly how long the review could last."

On June 11, 2024, the TCRC told members in an update: "We have no indication how long this process will take, or what an outcome could possibly look like. The result is a frustrating process. Both carriers have completely withdrawn any commitment to negotiate since the referral was issued, which already was almost non-existent since the sessions began last fall.

"Under the Canada Labour Code, the sweeping strike mandate the membership provided is valid for 60 days and is set to expire June 30. It is clear we cannot rely on a timely conclusion to these unfortunate circumstances and must protect our rights regardless of outcome. As a result, the TCRC will be conducting a subsequent strike vote beginning Friday June 14 and will run until June 29. The vote will again be electronic and received by email. We are very confident this can be a quick process with shorter turnaround because of the preparation and hard work already performed for the first ballot. This will ensure the TCRC is ready for any situation and are able to respond accordingly." On June 29, the union announced that close to 10,000 workers at CN and CPKC have voted to reauthorize strikes at both companies if negotiated settlements cannot be reached.

"CN and CPKC are trying to force changes to our collective agreements that would move the clock back on working conditions and rail safety. The Teamsters are trying to stop them. With the renewed strike mandate, we intend to go back to the bargaining table, work with federal mediators, and do everything in our power to reach a fair deal for our members and protect all Canadians," said TCRC President Paul Boucher.

On July 12, 2024, the Canadian Industrial Relations Board (CIRB) provided an update to the CN and CPKC on the timing of their decision regarding the Minister of Labour's referral about the question of essential services.

The CIRB advised CN and CPKC they intend to make that decision by Aug. 9, 2024, and in the event a decision is not made by Aug. 9, they will provide another update. The CIRB has advised it will issue a decision without holding oral hearings.

In response, the CN stated on their website: "We recognize that the prolonged negotiations are creating uncertainty, and we are working toward providing as much predictability as possible to our employees, customers and partners. No work stoppage can occur until either party files the required 72-hour notice after the CIRB issues its decision, subject to any extension of the cooling off period that may be ordered by the CIRB.

"Since the beginning of the negotiations, our goal has always been and continues to be to negotiate in good faith with the TCRC to reach a mutually beneficial agreement that maintains safety and stability for our team, our customers, and North American supply chains."

CPKC also responded, stating on their website: "This development helps provide some predictability regarding the timelines for a potential work stoppage because the parties cannot legally strike or lockout prior to the CIRB issuing its decision. In any event, a legal strike or lockout would require a minimum of 72-hour notice, subject to any extension of the cooling off period ordered by the CIRB. We have asked the CIRB to extend the cooling off period by 30 days. We know supply chain stakeholders would like certainty and predictability concerning a potential work stoppage. That is also why CPKC has proposed to the TCRC that we resolve this labour dispute through binding arbitration."

TCRC said on their website: "Workers are on the defensive in these negotiations, with both companies demanding a wide range of concessions on issues pertaining to crew scheduling, hours of work, and fatigue management. The stumbling blocks are company demands, not union proposals.

"CPKC aims to gut the collective agreement of all safety-critical fatigue provisions. The end result will mean train crews would be forced to stay awake even longer, increasing the risk of derailments and other accidents. CPKC has also failed to address the understaffing of rail traffic controllers."

TCRC added: "Meanwhile, CN is targeting fewer articles around fatigue, but their offer is contingent on the acceptance of a forced relocation scheme. Their proposal would see workers ordered to move across the country for months at a time to fill labour shortages in remote areas of Canada. CN's offer is also contingent on the union agreeing to extend workdays in all provinces west of Ontario.

"Compromising on safety, or threatening to tear families apart for months, are not solutions to staffing problems. CN and CPKC should instead be looking to improve working conditions and adopt a more humane approach to railroading."

For more information on the negotiations, you can go to https://www.teamstersrail.ca/… and https://www.cn.ca/… and https://www.cpkcr.com/…

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

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