Industries concerned about economic impact if work stops at both major railways
Published Jun 18, 2024 • Last updated 9 hours ago • 3 minute read
Canadian Pacific Kansas City (CPKC) headquarters in Calgary, Alberta. Photo by Ricky Leong/Postmedia
The union representing workers at Canada’s two largest railways is asking its membership for a new strike mandate.
Teamsters Canada director of public affairs Christopher Monette said strike votes are only valid for 60 days under current federal regulations. He said members of the Teamsters Canada Rail Conference (TCRC) previously voted in favour of strike action on May 1 and were in legal strike position as of May 22, but the mandate expires on June 30.
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With the labour dispute being referred to the Canadian Industrial Relations Board (CIRB), workers at both railways are currently prohibited from taking job action.
“Because we are delayed at the CIRB, we are now asking our members to reauthorize strike action,” Monette said in an email.
Voting on the new strike mandate got underway on June 14 and is set to run until June 29.
The situation is obviously extremely frustrating
Christopher Monette of Teamsters Canada
Monette said the union still remains far apart in its negotiations with both Canadian National Railway Co. (CN) and Canadian Pacific Kansas City Ltd. (CPKC) on a new collective agreement for its members. He added that the two companies are not willing to compromise on their current positions.
“The situation is obviously extremely frustrating,” he said.
The main sticking point in negotiations, according to Monette, remains disagreements around scheduling and rest periods. The companies have defended their proposals as a way to modernize workers’ schedules and said the proposals are in alignment with relevant federal regulations. The Teamsters, however, consider their proposals to be concessions and argue they would compromise safety if implemented.
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“Their demands undermine rail safety in Canada and remain the major stumbling block,” Monette said.
The CIRB took up the dispute after it was referred to them by Minister of Labour Seamus O’Regan, who specifically asked it to examine what impact a disruption of certain goods could have in regards to public safety. The board has the power to order that shipments of certain goods continue during a service disruption.
In an update posted on its website on June 14, CPKC said it had filed its reply submissions with the CIRB. The company also said it is willing to enter into binding arbitration with the TCRC in order to find a resolution to the dispute.
In its most recent statement on the dispute, CN Rail called for binding arbitration to solve the issues. The company said the two sides have been trying to negotiate a new collective agreement since November 2023 and remain far apart.
The union has rejected calls to enter binding arbitration and said it can be avoided if the railways pull back their current demands related to scheduling and rest periods.
The prospect of work stoppages at both of Canada’s major railways has a number of industries concerned about potential economic impacts. For example, the Canadian Manufacturers and Exporters said a disruption in rail service would delay shipments and, as a result, lower sales while raising expenses. The industry group said 225 of its members would lose an average of $275,000 per day due to a stoppage.
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There is currently no firm timeline as to when the CIRB will be handing down its final decision on the dispute.
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