(Ottawa and Montreal) Rail workers have not had their last word, as Ottawa’s intervention to revive the two major railways is being analyzed by an independent tribunal. Their unions want to trigger another work stoppage if it wins its challenge and even say they are prepared to take the case to court.
The story so far
December 31, 2023: Collective agreements for some 10,000 CN and CPKC employees expire.
August 9: After months of unsuccessful negotiations, the CPKC issues a lockout notice to its union members.
August 18: CN’s turn to signal its intention to resort to a lockout.
August 19: The Teamsters respond with a strike notice to the CPKC.
August 21: In the absence of an agreement, the two railways trigger lockouts.
August 22: Ottawa intervenes to impose binding arbitration between the parties.
Result: it is difficult, for the moment, to have an idea of when freight traffic will resume normally on the railway lines of the Canadian National Railway Company (CN) and Canadian Pacific Kansas City (CPKC).
“I’m telling you, it’s not over,” said Teamsters Canada President François Laporte, who was in Calgary to address members who were picketing.
A few hours after seeing CN restart its trains on Friday, the Teamsters Canada Rail Conference (TCRC) sent a strike notice to the Montreal-based railway. The recovery could therefore be short-lived. A walkout of some 6,500 locomotive drivers, mechanics and yard employees could occur as early as Monday, a little before 10 a.m.
Meanwhile, 3,500 Canadian Pacific Kansas City (CPKC) employees continued to picket as their union indicated its intention to challenge federal Labour Minister Steven MacKinnon’s directive to impose binding arbitration between the railway companies and Teamsters Canada.
Decision expected
The spotlight is therefore on the Canada Industrial Relations Board (CIRB) while we wait to see whether this administrative tribunal implements the Trudeau government’s instructions to force a return to work as well as binding arbitration – a process where working conditions are determined by an arbitrator.
“The Board is dealing with referrals under section 107 of the Canada Labour Code on an urgent basis,” its senior director of dispute resolution services, Jean-Daniel Tardif, said in an email. A hearing is being held [vendredi]. No further comment can be made at this time.”
He was not able to say when the CCRI would decide the issue.
The Council’s decision will have far-reaching consequences: if it follows the Trudeau government’s recommendations, we can expect activity to resume in a predictable manner at CN and CPKC. If it does not, the rail paralysis – which would have significant repercussions on the Canadian economy – could resume.
Also read “Did Ottawa avoid the worst?”
In accusing the Trudeau government of circumventing the “negotiation process,” Teamsters Canada said it was prepared to “appeal to the Federal Court if necessary.” In other words, the union is prepared to take the case to court if the CIRB rules in Ottawa’s favor.
Minister Steven MacKinnon invoked section 107 of the Canada Labour Code on Thursday to end a rail paralysis caused by lockouts at CN and CPKC, which were unable to reach an agreement with more than 9,300 employees.
Earlier this week, Teamsters Canada filed a strike notice for unionized CPKC employees, but not for CN employees. On Friday, it was CN’s turn. The union justified its decision by saying it had to “thwart the railway’s attempt” to “force arbitration.”
In Ottawa, the move is seen as part of a union strategy to retaliate against Mr. MacKinnon’s decision. The minister’s office declined to comment on the union’s latest decision.
“It’s a decision that is his to make,” it was said.
The reaction was quite different at CN, which appeared to have been taken by surprise after seeing its workers return home.
“The Teamsters do not want an agreement and this confirms it,” deplored the company’s spokesperson, Jonathan Abecassis. “Their decision does not affect the resumption of the current service.”
A paralyzed economy
The conflict brought a rail network of more than 35,000 km from coast to coast to coast to a standstill. The value of goods that pass through CN and CP railcars, based in Montreal and Calgary respectively, is approximately $1 billion, according to the Railway Association of Canada.
The pressure for rapid action was considerable, coming not only from across the country but also from the United States, Canada’s largest trading partner, which was concerned about the negative impact on its economy.
Consequences continued to be felt Friday, despite the Trudeau government’s intervention. According to a survey conducted by the Quebec Trucking Association (ACQ) among its members, there was a 15 to 20% increase in demand due to what is observed at CN and CPKC.
Prices have also increased “significantly,” according to the survey. For example, a trip between Montreal and Edmonton is now about $9,500, an increase of about 20 per cent over usual prices.
For exo commuter train users, activity was still suspended on the Vaudreuil-Hudson, Saint-Jérôme and Candiac lines, which use the CPKC tracks. At the time of writing, the timing of the “resumption of service” remained unknown. Trains operating on the CN network – the Mont-Saint-Hilaire and Mascouche lines – continued to operate normally.
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- $150,000
- Average annual salary of a locomotive engineer
Source: Canadian National
- $120,000
- Average annual salary of a train conductor
Source: Canadian National