Rail companies announce lockout notice date amidst labour dispute

Rail companies, Canadian Pacific Kansas City (CPKC) and Canadian National Railway (CN), have announced that employees unionized under Teamsters Canada Rail Conference (TCRC) will be locked out on August 22, 2024, if a settlement isn’t reached. This decision follows a ruling by the Canada Industrial Relations Board (CIRB) that no services need to be maintained during a railway strike or lockout to protect public health and safety.

In May 2024, the possibility of a dual rail strike was delayed when then-Federal Labor Minister, Seamus O’Regan Jr., asked the CIRB to investigate whether such a significant rail work stoppage would pose any public safety risks.

CPKC is urging the union to agree to binding interest arbitration to avoid disruptions. The company warns that a work stoppage during the busy fall shipping season could harm Canada’s supply chains and international reputation.

In a recent press release, CN stated that its goal since the beginning of negotiations has been to “negotiate in good faith with the Union to reach a mutually beneficial agreement that maintains safety and stability for its team, customers, and North American supply chains.” CN added that it has made multiple offers to address employee issues.

To prepare for a possible lockout, CPKC and CN will stop accepting dangerous goods to ensure they are safely removed from the rail network. Both companies remain committed to negotiating in good faith and have offered contract renewals with competitive wage increases.

CN has formally asked the federal government to step in and order binding arbitration to resolve its ongoing labor dispute with the TCRC. This request follows a CIRB decision that did not bring the conflict closer to resolution.

Binding arbitration, as proposed by CN, would involve an independent arbitrator determining the terms of a settlement, working out a fair and impartial resolution while avoiding significant disruptions.

Both CN and CPKC have emphasized that prolonged uncertainty could harm Canada’s economy and disrupt supply chains.