Lockout and strike notices issued ahead of possible Canadian rail work stoppage

CN Rail has formally issued notice to the Teamsters Canada Rail Conference (TCRC) advising them of its intention to lockout Canadian TCRC-represented employees Aug. 22 at 12:01 a.m. ET unless an agreement or binding arbitration is achieved before that time.

Despite negotiations over the weekend, CN said no meaningful progress has occurred, and the parties remain very far apart.

Unless there is an immediate and definite resolution to the labour conflict, CN said will have no choice but to continue the phased and progressive shutdown of its network which would culminate in a lockout.

TCRC said it received CN’s notice of the intention to lockout workers, issuing a statement condemning the railway’s demands.

“Despite reaping billions in profits over the years, CN is demanding concessions that would drag working conditions back to another era,” said Paul Boucher, president of TCRC. “They don’t care about supply chains, farmers, or small businesses—their sole focus is on padding the pockets of their managers and shareholders, with little regard for the safety or well-being of employees.”

TCRC said CN is demanding an extension to work days in provinces west of Ontario, creating a “fatigue-related safety risk.” The union said CN is also attempting to impose a forced relocation policy, which could see workers forced to move across the country, tearing families apart in the process.

TCRC served its own 72-hour strike notice to CPKC.

TCRC said CPKC has served notice it will be locking out our members as well as changing the terms of the collective agreements, stripping workers of those protections. This forces the union to serve strike notice to protect their members.

“We do not take this decision lightly, but CPKC’s reckless actions have forced our hand,” said Boucher. “By unilaterally locking out our members and changing the terms of the collective agreements, they are stripping our members of essential protections. We’re serving strike notice to defend the rights and safety of our members.”

The Teamsters said it remains committed to negotiating in good faith, and doing everything possible to achieve a fair and equitable agreement with the company.

“Make no mistake—corporate greed is what brought us here. The biggest sticking points are company demands, not union proposals. If a work stoppage occurs, blame will rest squarely on CN,” said Boucher.

In its statement, CN said in January it offered the TCRC a modernized agreement that improved safety, wages and work/life balance while protecting acquired rights, but the offer was refused.

The offer was then improved in April with a focus on better wages ($75/hour for locomotive engineers and $65/hour for conductors), job security and guaranteed earnings for employees. CN said TCRC refused the improved offer.

In May, CN said it then presented a simplified offer within the framework of the existing collective agreement with improved wages and predictable days off, which the TCRC also refused.

CN also said it offered to voluntarily submit to binding arbitration in June. Binding arbitration is a process where both parties empower a mutually agreed upon independent arbitrator to determine the terms of a settlement, and said TCRC refused this offer.

CN’s request for the federal government to invoke binding arbitration in the ongoing labour dispute between Canada’s railways and TCRC was denied by the federal government.

In a letter to TCRC in response to the request by CN, Labour Minister Steven MacKinnon wrote, “Consistent with our discussion on Aug. 5, 2024, I would like to clarify that it is your shared responsibility—Canadian National Railways Company and the Teamsters Canada Rail Conference—to negotiate in good faith and work diligently towards a new collective agreement.”

MacKinnon said to support the negotiation process, mediators from the Federal Mediation and Conciliation Service remain available to work with both sides to facilitate productive negotiations and help bridge any gaps.

“I trust that with continued effort, an agreement can be achieved promptly,” he said. “The government firmly believes in the collective bargaining process and trusts that mutually beneficial agreements are within reach at the bargaining table.”

Following the Canada Industrial Relations Board (CIRB) ruling Aug. 9 that no activities by CN or CPKC would need to be maintained in the event of a strike or lockout, both railways issued notice of a planned lockout.

CN said it must continue with the progressive and planned shutdown of its network, as the company remains under the threat of an unpredictable strike notice. The railway said the planned shutdown helps to ensure the safety of the communities in which it operates and the safety of its customers’ goods, and to optimize the network’s recovery following a labour disruption.

The Canadian Federation of Independent Business (CFIB) has also called on all parties to reach an immediate agreement to prevent a work stoppage at Canada’s major railway companies.

CFIB said any disruptions to railway operations could be devastating for small businesses, their employees and communities.

“Many small businesses rely on rail services to send and receive goods, products and essential materials,” read the CFIB statement. “The longer the work stoppage goes on, the costlier it becomes for small firms who may lose sales and contracts if goods are not delivered or received on time.”

CFIB said that although the decision by CIRB prohibited the maintenance of certain activities during a work stoppage, politicians still have the power to change labour laws. CFIB continues to call on the government to make ports and rails an essential service, so they remain fully operational at all times.

During a work stoppage, any product coming to, leaving, or moving within Canada on rail will not be transported. Only limited train movements within yards will be executed as there are not enough certified management train crews to ensure intercity train movements.

Should a settlement be reached, or arbitration be agreed to, CN said it will remove its embargoes and resume normal operations.