Uncertainties Continue to Loom Over Canadian Freight Rail Availability
Just as it seemed there would be a resolution to the work stoppage involving two major Canadian freight railroads and the Teamsters Canada Rail Conference (TCRC) late Aug. 22, union members were saying as of our press time the next day that they weren't yet ready to return to work, continuing the uncertainty over when the work stoppage will officially end.
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Both Canadian National (CN) and Canadian Pacific Kansas City (CPKC) rail operators had locked out TCRC members just after midnight on Aug. 22 (see 2408190049), after the companies and the union failed to reach a new labor agreement to replace the old one that expired on Dec. 31, 2023. The continuing negotiation impasse appears to be over rest periods and scheduling.
But then both railways announced late the same day that the Canadian minister of labor would compel the Canada Industrial Relations Board (CIRB) to order the parties to enter into binding arbitration, according to CPKC.
Such an action would enable the railways to enact their recovery plans.
However, as of press time, the parties haven't indicated whether they have received the order from the Canadian government ending the work stoppage.
Furthermore, TCRC members turned down the opportunity to work at CPKC. Union members had previously approved earlier this year to go on strike once they were legally allowed to do so (see 2405060029).
Said CPKC in an Aug. 22 statement: "Unfortunately, the Teamsters Canada Rail Conference (TCRC) representing the Train and Engine division and Rail Canada Traffic Controller division refused to discuss any resumption of service, and instead indicated that they wish to make submissions to challenge the constitutionality of the Minister’s direction, as well as the CIRB’s discretion to proceed with any order. ... While the Minister directed that the CIRB proceed expeditiously, any decision by the CIRB on the resumption of service will be delayed. CPKC remains prepared to resume service as soon as it is ordered to do so by the CIRB."
TCRC members at CN appeared to take down the picket lines and go back to work -- at first.
But then TCRC announced Aug. 23 that it gave CN a strike notice, effective Aug. 26 at 10 a.m. ET.
"By sidestepping the collective bargaining process and ordering binding arbitration, the federal government has undermined the foundation on which labour unions work to improve wages and working conditions for all Canadians. Bargaining is also the primary way our union fights for rail safety -- all considerations that outweigh short-term economic concerns," TCRC President Paul Boucher said in a release.
TCRC said it is taking strike action to pressure CN into negotiating an agreement.
Countered CN: "While CN is focused on its recovery plan to get back to powering the economy, the Teamsters are focused on returning to the picket line and shutting down the economy, impacting people and jobs across the country. Over the last nine months, CN has negotiated in good faith. The Company consistently proposed serious offers, with better pay, improved rest, and more predictable schedules. This latest development confirms that the Teamsters never took negotiations seriously and that they had no desire to reach a deal."
As all parties work with CIRB on the labor agreement, "the timeline for a decision from the CIRB regarding the Minister’s referrals is still unclear at this time. The union is prepared to appeal to the federal court if necessary," TCRC said.