MONTREAL — Canadian National Railway called for government intervention this evening as Canada moved closer to a shutdown of its two Class I railroads, but earlier today [Aug. 21] Prime Minister Justin Trudeau simply called on the two sides to reach a deal.
CN plans to lock out members of the Teamsters Canada Rail Conference at 12:01 a.m. on Thursday, while the TCRC plans to strike against Canadian Pacific Kansas City at the same time. TCRC rail traffic controllers will also walk out against CPKC.
Two days after CPKC CEO Keith Creel put the blame for the labor impasse firmly on the union [see “Canada’s labor minister to meet …,” Trains News Wire, Aug. 19, 2024], CN also did so in a company statement.
“We have made four offers to the Teamsters,” CN’s statement said. “Offers that improved safety, increased wages, and provided employees with better schedules and predictability and opportunities to work. Offers that would avoid the shutdown of the Canadian economy.
“Any statement to the contrary is false and intended to mislead from the real issue: the Teamsters’ inability or unwillingness to negotiate seriously. … CN has tried to get a deal, but a deal is not possible without a willing partner. The Minister of Labour must intervene.”
TCRC President Paul Boucher has said both railroads are seeking contract concessions that would create fatigue-related safety risks, and that the “biggest sticking points are company demands, not union proposals” [see “Teamsters Canada Rail Conference delivers strike notice …,” News Wire, Aug. 18, 2024]. Creel, in his Monday statement, said Boucher was “grossly misrepresentating” the facts.
Trudeau, meanwhile, said today, “My message is very straightforward. It is in the best interest of both sides to continue doing the hard work at the table to find a negotiated resolution.”
Labor Minister Steve MacKinnon said earlier this evening he had completed meetings with officials at CN, CPKC, the union, as well as the premiers of Alberta and Saskatchewan and Quebec’s labor minister.
“Canadians need urgency at the table,” MacKinnon said in posts on X.com. “The parties need to get deals done now. … Parties need to understand something very clearly: it is their duty to get a deal.”
Among those urging the government to act are the heads of the Chambers of Commerce for Canada and the U.S., Perrin Beatty and Suzanne Clark. In a joint statement today, they said, “A stoppage of rail service will be devastating to Canadian businesses and families and impose significant impacts on the U.S. economy.
“Significant two-way trade and deeply integrated supply chains between Canada and the United States mean that any significant rail disruption will jeopardize the livelihoods of workers across multiple industries on both sides of the border. The Government of Canada must take action to ensure goods continue to move reliably between our two countries.”
And the National Airlines Council of Canada said in a statement that the impact of a rail strike could quickly spread to air transportation, as well, citing as an example that 40% to 50% of aviation fuel used at Toronto Pearson airport moves by rail. “Any interruption of service would not only result in disruptions to the aviation supply chain, but would result in increased costs as a result of pursuing alternative methods of transport,” the group said. Jeff Morrison, CEO of the NACC, said “the federal government must be prepared to step in, using every tool available in order to prevent massive disruption to Canada’s supply chain, economy, and reputation, including the significant disruptions and cost impacts it would have on Canada’s aviation sector.”
