Canada rail strike looms as unions and rail operators weigh in

A rail strike is looking increasingly likely in Canada as the Canadian Union of Railway Workers (TCRC) and major rail operators Canadian National Railway (CN) and Canadian Pacific Kansas City Railway (CPKC) continue to struggle to reach an agreement. Tensions are rising as the deadline approaches.

Also read: How Canada’s rail strike will impact freight markets

On August 9, the Canada Industrial Relations Board (CIRB) determined that the services provided by the railways were not legally considered “essential services” and established a 13-day cooling-off period before a strike could legally begin. Despite this, Canadian Railways yesterday issued a notice that its members would stop providing services starting Thursday, marking the start of a legal strike.

In response, major U.S. freight railroad CSX Transportation has suspended cross-border shipments to and from Canadian National Railway and Canadian Railways, causing Canadian rail operators to suspend import and export services for refrigerated cargo, hazardous materials and security-sensitive items originating or terminating on Canadian railways.

Despite the strike notice, the union has expressed its willingness to continue negotiations with CN and CPKC for as long as necessary. However, CN reported that recent talks “have not made any meaningful progress” and that the two sides remain far apart on key issues.

As a precaution, CN has begun a phased, gradual shutdown of its network to ensure the safety of communities and goods, starting with the lockdown. CPKC took preemptive measures by issuing a notice requiring a work stoppage for all employees starting at 12:01 a.m. Thursday. TCRC criticized this as a tactic to pressure the government to implement final and binding arbitration, citing concerns for public health, safety and economic stability.

CN had sought the intervention of Canada’s labour minister to refer the unresolved issues to binding arbitration, but that request was rejected. The rail operator warned that unless a resolution was reached quickly it would continue to phase out its network, with more bans likely to be announced today.

It is worth noting that cargo on CN and CPKC railways, which both originate and destination in the United States, is currently not affected by the embargo.