(Ottawa) The country’s two largest railways warned Friday they will lock out their workers in less than two weeks unless the two sides can agree on new contracts, raising the threat of a work stoppage that could cripple supply chains nationwide.
As the clock ticks down on negotiations, Canadian National Railway Company (CN) and Canadian Pacific Railway Company in Kansas City (CPKC) have both said lockouts are imminent on August 22 unless there is a breakthrough at the negotiating table.
The warnings came hours after the Canada Industrial Relations Board (CIRB) said a work stoppage would not pose a “serious danger” to public health or safety, setting the stage for a general strike in less than two weeks. In the event of a work stoppage, employees at the two major railways would not be required to continue transporting goods, including essential commodities such as chlorine for water and propane for care homes.
The 13-day negotiation period ordered by the court means that if new contracts cannot be agreed, a national strike could take place as early as August 22.
Some 9,300 CN and CPKC conductors, engineers and yard workers have been negotiating two new collective agreements on and off for months, in addition to a third agreement for CPKC rail traffic controllers.
Canadian Pacific has announced it will lock out 3,300 members of the Teamsters Canada Rail Conference (TCRC) one minute after midnight on August 22 – the earliest time allowed by the court – unless a deal is reached.
PHOTO ADRIAN WYLD, CANADIAN PRESS ARCHIVES
Former Labour Minister Seamus O’Regan
“If no resolution is reached in negotiations during the extended cooling-off period, and if the CFTC continues to refuse to proceed to binding arbitration of disputes, CPKC will have no choice but to take this action,” the company said in a statement, citing supply chain stability.
CN has formally requested the labour minister’s intervention, saying the company has “lost confidence” in the negotiation process. A phased shutdown of its network would also result in a lockout of 6,000 workers on Aug. 22, it said.
“We’ve made four offers this year, offers that include points on wages and workforce availability while maintaining safety, and the union has yet to make a single counter-offer,” said CN spokesman Jonathan Abecassis.
The union said the lockout warnings amounted to an “unexpected and unnecessarily antagonistic” escalation.
“Contrary to CN’s claims, the company has shown no flexibility or willingness to compromise at the negotiating table,” said Teamsters spokesperson Christopher Monette.
The federal government does not wish to intervene
The sticking points at the bargaining table are employee schedules, fatigue management and safety, he said. The union has rejected binding arbitration with both companies.
Shippers and producers say a possible strike by CN or CPKC workers, or both, would halt freight traffic, clog ports and disrupt industries.
Federal Labour Minister Steven MacKinnon, who replaced O’Regan after he resigned three weeks ago, met Monday morning with leaders of the two rail operators and the union.
The minister said the two sides should reach an agreement themselves rather than relying on government intervention.
“I call on the parties to remain at the negotiating table and continue to hold productive discussions that address current needs. A negotiated agreement is the best path forward,” MacKinnon said in a statement Friday.
Federal conciliators continue to participate in the talks.
In May, then-Labour Minister Seamus O’Regan asked the CIRB to examine whether a work stoppage would endanger the health and safety of Canadians after the union voted overwhelmingly in favour of a strike mandate.
“There is no doubt that a work stoppage at CN would cause inconvenience, economic hardship and, possibly, as some groups and organizations have suggested, harm to Canada’s global reputation as a reliable trading partner,” the board said in its unanimous decision.
However, the question of what constitutes an essential service under the Canada Labour Code is “very specific,” he continued.
“The Board is satisfied that at this time, a strike or lockout at CN would not pose an immediate and serious danger to the safety or health of the public.”
The CCRI said the same thing in a separate decision regarding the CPKC.
Concerns are growing
Canadian railways transport $380 billion worth of goods each year and more than half of the country’s total exports, according to the Railway Association of Canada.
Concern over a strike by some 9,300 workers has already taken a toll on both railways after customers sought to reroute goods in recent months following the approval of a strike mandate by union members in May.
Shippers, the players most frustrated by Friday’s decision, implored the prime minister to intervene the same day.
“We are writing to urge you to take immediate action and do whatever is necessary to avoid disruption,” said a joint letter from more than 70 industry groups and 40 chambers of commerce.
A prolonged shutdown would choke the pipeline of goods, drive up prices and worsen affordability problems for businesses and individuals, in addition to the risk of unpaid furloughs at companies forced to suspend operations, the organizations warned.
Commuters could also feel the effects of a work stoppage.
If such an incident were to occur between the 80 CPKC rail traffic controllers who are negotiating a contract, separate from the main CPKC negotiating group, passenger trains running on Canadian Pacific tracks in Vancouver, Toronto and Montreal could be paralyzed.
Factories would also immediately face delivery delays, said Dennis Darby, president and CEO of Canadian Manufacturers & Exporters.
“Then you pay penalties because you have late deliveries,” he lamented in an interview.
Bob Masterson, president and CEO of the Chemistry Industry Association of Canada, called the court’s decision disappointing.
“There is no Plan B,” said Masterson, whose organization represents plastics and chemical producers.
He said about 80% of the industry’s $100 billion in annual shipments rely on rail, some of it to Canadian municipalities that need chlorine to disinfect drinking water.