The country’s two main rail companies and their employees are still at odds over working hours, safety or wages, with the threat of a strike or lockout next week looming.
Canadian National Railway Company (“CN”) and Canadian Pacific Railway Company of Kansas City (“CPKC”) have warned that they will lock out their employees on August 22 if a tentative agreement is not reached by then, raising the spectre of a labour dispute that could paralyze supply chains across the country.
The Teamsters Canada Rail Conference (TCRC), which represents some 9,300 locomotive engineers, conductors, yard workers and rail traffic controllers, said the CPKC wanted to “strike the collective agreement of all provisions relating to fatigue, which are essential to safety.”
CN has targeted fewer fatigue-related issues, the union admits, but it has also proposed what the Teamsters call a “forced relocation plan,” which would see some employees move to remote locations for months at a time to fill labour shortages within the company.
“Our members are only looking for a fair and equitable agreement,” wrote Paul Boucher, president of the Teamsters Canada Rail Conference, last Friday. “Unfortunately, both railway companies are demanding concessions that could separate families or undermine rail safety.”
Two offers each
The two companies each submitted separate bids, claiming they met all safety regulations — a point the union did not deny.
One of CN’s two offers calls for employees to work 40 hours a week, with at least 10 or 12 hours off between shifts — depending on whether they’re close to home or away — and two or three consecutive days off each week, as required by law. A similar offer was filed by CPKC before being “conditionally” withdrawn Friday.
The approach would mark a radical departure from the mileage-based work schedule system that has been in place for decades at both rail companies.
If accepted, the new deal would provide more predictability for workers and managers, the railways say. But if an employee arrives at their destination a few hours early, it also means they could be assigned to other duties rather than clocking in when they arrive.
“None of CN’s offers compromised safety in any way,” the Montreal carrier said in a statement Friday. “The latest offer proposed third-party arbitration. The union rejected all offers and made no counter-proposals.”
The union has indeed refused binding arbitration offers from both companies.
CN also said it has extended an offer that is more in line with the current agreement and includes wage increases.
New Federal Rules
Similarly, CPKC said the issues at stake in its “status quo” offer revolve around wages and pay that kicks in after a certain number of hours of rest at a location that is not the worker’s home terminal. The Calgary-based rail company wants to push back the start time for that pay, an adjustment made in response to longer rest periods imposed by stricter federal regulations.
“The status quo offer fully complies with the new regulatory requirements regarding rest periods and does not compromise safety in any way,” the carrier assured in a press release also published on Friday.
New federal rules took effect in May 2023, increasing the minimum rest period between shifts to 10 hours at home and 12 hours when traveling, up from six and eight hours, respectively.
The new rules also capped the maximum length of freight workers’ shifts at 12 hours, down from 16.
In a decision released last Friday, the Canada Industrial Relations Board ordered a 13-day reflection period on two decisions that found rail services to be “non-essential,” opening the door to a full work stoppage as early as Thursday of next week.