Canadian National Railway Co. and Canadian Pacific Kansas City Ltd. are in separate, mediated labour negotiations with Teamsters Canada Rail Conference, which represents 9,300 train operators, traffic controllers and yard workers.DARRYL DYCK/The Globe and Mail
Labour disruptions at Canada’s big freight railways would be devastating to the country’s economy, warns the head of a group that speaks for the country’s producers and exporters.
Dennis Darby, president of the 2,500-member Canadian Manufacturers and Exporters, said governments should prevent the strikes or lockouts that loom at both of Canada’s major railways with legislation that mandates binding arbitration in labour disputes that harm the industrial economy, and declare as essential the movement of goods on railways, ports and roads. Mr. Darby’s calls come amid the possibility of labour stoppages at Canada’s border crossings, and the Port of Montreal, the country’s second-busiest marine terminal.
“There is a lot of worry in the manufacturing and export sector right now,” he said by phone. “Manufacturers depend on the rail system and they depend on moving goods east, west, north and south.”
Canadian National Railway Co. CNR-T and Canadian Pacific Kansas City Ltd. CP-T are in separate, mediated labour negotiations with Teamsters Canada Rail Conference, which represents 9,300 train operators, traffic controllers and yard workers.
Strikes or lockouts on May 22 were averted when the Canadian Industrial Relations Board was directed by Labour Minister Seamus O’Regan to collect submissions from affected parties on whether certain rail shipments should be declared essential services and continue during stoppages. These goods include fuel, propane, food and water treatment in certain regions and across Canada.
Two-thirds of the producers in a Canadian Manufacturers and Exporters survey said the impact of a rail strike would be “significant” or “severe.” The stoppage would cost the average manufacturer $275,000 a day in lost revenue and higher costs.
The CIRB has extended its submissions and replies deadline from affected parties to June 14 from May 31.
“As of right now, the CIRB has not indicated how long they will take to make a decision, and a labour stoppage cannot happen until then,” said Jonathan Abecassis, a CN spokesman.
He reiterated CN’s position that the railway’s services are not 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.”
The CIRB review could take 60 days, CPKC has said, and create uncertainty for the railway and its customers. Railways and their customers prepare for railway disruptions by stockpiling goods or moving shipments ahead of time. However, any preparations are limited by rail and storage capacity, and regulations that govern such hazardous goods as chemicals. Trucks are too small to replace trains.
The possible rail disruptions coincide with the threat of a strike by 1,200 Port of Montreal dock workers, represented by the Canadian Union of Public Employees. Montreal is a key exporting hub for the factories in Ontario and Quebec. Meanwhile, 9,000 Public Service Alliance of Canada workers – including border guards – are in a strike position on Thursday.
Christopher Monette, a spokesman for the Teamsters, said talks with CN are set to resume on Tuesday, and there are no dates scheduled with CPKC as of Monday.
“Both companies continue to demand concessions … pertaining to scheduling and fatigue management. Their demands undermine rail safety in Canada, and remain a major stumbling block,” Mr. Monette said. “Canadians can rest assured that our union will make no compromise on rail safety.”
Mr. Abecassis of CN said the union has rejected a “modernized” offer that pays by the hour, as well as a proposal in line with the framework of the previous contract, which pays by the mile, broadly speaking. “All offers are aligned with government regulations,” he said. “Implying they are unsafe is false.”