Railway’s request for binding arbitration denied as potential strike looms

CN Rail’s request for the federal government to invoke binding arbitration in the ongoing labour dispute between Canada’s railways and the Teamsters Canada Rail Conference (TCRC) has been denied.

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.

In its ruling, CIRB also imposed a 13-day “cooling off period” before a potential strike or lockout can occur, giving CN and CPCK until Aug. 22 to take any strike action, with 72-hours’ notice of such a move being the minimum.

CPKC quickly released a statement saying it will issue notice to the Teamsters Canada Rail Conference (TCRC) – Train and Engine division and TCRC – Rail Traffic Controller division of its plan to lock out employees at 12:01 a.m. ET Aug. 22 if union leadership and the company are unable to come to a negotiated settlement or agree to binding interest arbitration. CPKC said the company is committed to continuing good faith negotiation throughout.

CN also responded, saying in a release that the company is formally requesting the minister of labour’s intervention under section 107 of the Canada Labour Code to protect Canada’s economy from the impacts of prolonged uncertainty.

“Negotiations with the TCRC resumed on Wednesday,” read CN’s statement. “However, no progress has been made as the TCRC has not engaged meaningfully at the negotiating table.”

CN said it is willing to keep negotiating with the TCRC, but has lost faith in the process and is concerned that a negotiated deal is no longer possible without a willing partner.

“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 12:01 a.m. ET on Aug. 22,” CN said.

The Private Motor Truck Council of Canada (PMTC) said it attended a stakeholder meeting Aug. 14 held by the National Supply Chain Office (NSCO) on the current situation with the labour dispute.

During the meeting, the PMTC said that CPKC has a small management team that will work to ensure any trains that are stranded on the network are delivered to the nearest yard/terminal and secured. The cargo will not be delivered to its final destination, but rather to the closest terminal/yard. After all trains are secured, all operations will be wound down until an agreement can be reached. It was unclear at the time of the meeting if any yards will be open and if containers will be able to be retrieved by customers.

On the CN side, the railway has also begun embargoes on dangerous goods/hazardous materials to ensure rail networks can be cleared of these products prior to Aug. 22. CN also has a small management team that will ensure any trains that are stranded on the network are delivered and secured at the closest yard/terminal. The containers on the train will not be delivered to their final destination, rather the closest terminal. It is also unclear if any yards will be open for container retrieval after Aug. 22.

The PMTC said during the meeting that a shutdown of both Canadian rail companies would be “catastrophic” to Canada’s economy, security and health and safety.

“We advised that the trucking network has nowhere close to enough capacity to handle the overflow of freight that would hit the market as a result of the closure of our country’s two major railways,” the PMTC said.

The Retail Council of Canada (RCC) also voiced its concern for the potential strike.

“There is still time to avoid a strike and the potential shutdown of Canada’s rail system,” it said. “Agreements between the parties or government intervention could prevent this disruption, and RCC will continue to apply pressure to ensure a positive outcome.”