Work stoppage begins, Canadian railways shut down

With no deal reached by the Aug. 22 deadline, CN Rail and CPKC shut down operations at 12:01 a.m., bringing Canadian railways to a halt.

Teamsters Canada Rail Conference (TCRC) said parties remain far apart on negotiations, and both CN and CPKC have begun their lockout as of the deadline.

CN announced on its website that the company has formally locked out employees represented by TCRC after the union did not respond to another offer by CN in a final attempt to avoid a labour disruption.

In addition to locking out its union employees, CPKC said the move will be followed by the lock out of employees who are members of the TCRC – Rail Traffic Controller (RCTC) division effective 12:01 a.m. MST Aug. 22.

“We fully understand and appreciate what this work stoppage means for Canadians and our economy,” CPKC said in a statement. “CPKC is acting to protect Canada’s supply chains, and all stakeholders, from further uncertainty and the more widespread disruption that would be created should this dispute drag out further resulting in a potential work stoppage occurring during the fall peak shipping period. Delaying resolution to this labour dispute will only make things worse.”

CN and CPKC formally issued notice to the TCRC advising them of their intention to lockout Canadian TCRC-represented employees unless an agreement or binding arbitration is achieved before the Aug. 22 deadline.

After receiving the notice, TCRC issued 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.”

CN said in January that it offered 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 last week.

The Canada Industrial Relations Board (CIRB) ruled on 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 quickly after the ruling.