Canadian Pacific trains sit at the main CP Rail train yard in Toronto, March 21, 2022.Nathan Denette/The Associated Press
Mediated talks between Canadian Pacific Kansas City Ltd. CP-T and the Teamsters union are set to resume on Friday as a review by the labour regulator delays a strike or lockout date at Canada’s two big freight haulers.
CPKC and Canadian National Railway Co. CNR-T are in separate rounds of negotiations with the union, which represents a total of 9,300 train operators, traffic controllers and yard workers in Canada.
All sides would have been in legal strike or lockout positions on May 22, stoppages that would have disrupted the economy and halted the shipments of fuel, retail goods and key commodities across the country.
However, federal Labour Minister Seamus O’Regan last week directed the Canada Industrial Relations Board (CIRB) to examine whether certain rail deliveries should be declared essential services and continue during stoppages. These goods include heavy fuel, propane, food and water treatment in remote communities and across Canada.
“Serious concerns have been raised about potential impacts to the health and safety of Canadians,” Mr. O’Regan said at the time.
CPKC said in a statement on Thursday that the CIRB review has pushed back the date of a strike or lockout by 60 days and created supply chain “uncertainty” over stoppage deadlines.
The CIRB has asked shippers, organizations and others how they would be affected by a stoppage, and what alternatives are available to replace the lost shipments. Submissions will be collected until May 21, and parties have until May 31 to respond.
A strike or lockout cannot happen until 72 hours after the CIRB issues a decision, expected some time after May 31.
Ottawa asks labour board to review safety concerns of potential strike by rail workers
Calgary-based CPKC said it is trying to provide customers with more certainty over the timing of any disruptions. The railway said the union rejected its request that the talks go to binding arbitration. The railway also said on Thursday it has asked the union to agree on which shipments should continue in a work stoppage.
“We believe this would eliminate the need for the CIRB referral process and bring much needed clarity regarding the timing of any potential strike or lockout,” CPKC said. “If no maintenance of services agreement is reached, based on precedent, it is unlikely the parties will be in a position to initiate a legal strike or lockout within the next 60 days.”
A Teamsters spokesman was not immediately able to respond to questions.
Bob Masterson, head of the Chemistry Industry Association of Canada, said a railway stoppage would quickly affect the supply of several products vital to health and safety. This includes chlorine, used by most municipalities to purify drinking water, and sulphuric acid, used to treat sewage.
Mr. Masterson said he will make submissions to the CIRB, and hopes the government acts in the public interest by ensuring the movement of chemicals essential to consumers and industries.
The movement and storage of chlorine and other chemicals are highly regulated, and customers and producers cannot stockpile more than a couple weeks’ supply ahead of a stoppage, Mr. Masterson said in an interview. “There’s a long list of things that are essential for public safety,” he said, “and I don’t think we’re going to find out what those are until they’re not available.”
CN spokesman Jonathan Abecassis noted the railway did not request the CIRB review, and that the company and union agreed none of its services are “essential within the meaning of the law.”
“However, we acknowledge that countless industries and communities depend on the railways to feed, heat, protect and shelter Canadians,” Mr. Abecassis said. “While the board conducts its evaluation, CN will continue to seek a collective agreement with the [union] that is good for employees, customers and for the economy.”
Canada’s railway sector is heavily unionized, but it is rare to have simultaneous stoppages looming.
CN and its union counterparts have been negotiating at a Montreal hotel since Monday.
CN said in a statement it has made a new offer to the union that includes raises of 3 per cent and 2.5 per cent this year and next, respectively. The railway has dropped its bid to switch to an hourly pay system from the current mileage-based payroll, and says its offer complies with the federal laws on work and rest periods.
CN said the average annual wages are $121,000 for conductors and $150,000 for engineers.