Industries are concerned about the economic impact of a construction freeze on both major railways
The union representing employees of Canada’s two largest railway companies is asking its members for a new strike mandate.
Christopher Monette, director of public affairs for Teamsters Canada, said strike votes are only valid for 60 days under current federal rules. He said Teamsters Canada Rail Conference (TCRC) members had already voted for strike action on May 1 and were in a legal strike position on May 22, but that expires on June 30.
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Because the labour dispute has been referred to the Canadian Industrial Relations Board (CIRB), employees of both railway companies are currently prohibited from taking industrial action.
“Because of the delays at CIRB, we are now asking our members to reauthorize the strike,” Monette said in an email.
Voting on the new strike mandate began on June 14 and is scheduled to last until June 29.
The situation is obviously extremely frustrating
Christopher Monette of Teamsters Canada
Monette said the union is still far apart in its negotiations with Canadian National Railway Co. (CN) and Canadian Pacific Kansas City Ltd. (CPKC) over a new collective agreement for its members. He added that the two companies are not willing to compromise on their current positions.
“The situation is obviously extremely frustrating,” he said.
The biggest sticking point in the negotiations, according to Monette, continues to be disagreements over work hours and rest periods. The companies defended their proposals as a way to modernize workers’ work schedules and said the proposals were consistent with relevant federal regulations. The Teamsters, on the other hand, view their proposals as concessions and argue that implementing them would jeopardize safety.
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“Their demands undermine rail safety in Canada and remain the biggest obstacle,” Monette said.
The CIRB took up the dispute after it was referred to the CIRB by Employment Minister Seamus O’Regan. O’Regan had specifically asked the panel to investigate what impact a disruption in the supply of certain goods might have on public safety. The panel has the power to order the continuation of supplies of certain goods during a disruption in supply.
A June 14 update on the CPKC website said it had submitted its response to the CIRB. The company also said it was willing to enter into binding arbitration with the TCRC to find a solution to the dispute.
In its latest statement on the dispute, CN Rail called for binding arbitration to resolve the issues. The company said the two sides have been trying to negotiate a new collective agreement since November 2023 but are far apart.
The union rejected calls for binding arbitration, saying it could be avoided if the railway company withdrew its current demands regarding timetables and rest periods.
The prospect of work stoppages at Canada’s two main rail companies has raised concerns about the potential economic impact in many industries. The Canadian Manufacturers and Exporters, for example, said a disruption to rail operations would lead to delays in deliveries and, as a result, lower revenues and higher costs. The industry group said 225 of its members would lose an average of $275,000 a day due to a disruption.
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There is currently no set timetable for when the CIRB will announce its final decision in this dispute.
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