Lockouts begin on CN, CPKC

Canadian National Railway and Canadian Pacific Kansas City are now shut down in Canada after locking out Teamsters Canada Rail Conference operating crews beginning at 12:01 a.m. today (Aug. 22) — the first time both railroads have been hit by a work stoppage at the same time.

A lockout of CPKC rail traffic controllers began two hours later.

The TCRC had previously issued a strike notice against CPKC, but now is referring to the work stoppage as a lockout by both railroads. About 9,300 workers are locked out.

CN, in a statement issued immediately after the deadline, said that “without an agreement or binding arbitration, CN had no choice but to finalize a safe and orderly shutdown and proceed with a lockout.” CPKC said its shutdown will enable the railroad “to safely and efficiently resume full rail operations across the entire network once the work stoppage ends.”

The CBC reports negotiations at hotels in Montreal, the headquarters of CN, and Calgary, home of CPKC, broke off shortly before midnight. Each side blames the other for the lack of an agreement.

CN said the Teamsters “have not shown any urgency or desire to reach a deal that is good for employees, the company and the economy,” while CPKC said TCRC leadership “continues to make unrealistic demands that would fundamentally impair the railway’s ability to serve our customers with a reliable and cost-competitive transportation service.” Each railroad has offered lengthy histories of the bargaining with details on its offers: CN information is here and CPKC’s is here.

The TCRC, meanwhile, says it put forward “multiple offers” the last several days, “none of which were seriously considered by either company,” and repeated an earlier statement that company demands, not union proposals, are the main issue. It says the railroads seek to change rules about rest periods and scheduling, increasing the possibility of fatigue-related safety issues — a claim both railroads dispute.

“Throughout this process, CN and CPKC have shown themselves willing to compromise rail safety and tear families apart to earn an extra buck,” said Paul Boucher, the union president. “…  Their sole focus is boosting their bottom line, even if it means jeopardizing the entire economy.”

Both railroads have called for binding arbitration to settle the dispute, a move rejected by the union. A CN request for the Canadian government to impose such arbitration was turned down earlier [see “Canada’s labor minister won’t send …,” Trains News Wire, Aug. 15, 2024]. There have been widespread calls for government intervention because of the strike’s economic impact — from groups ranging from the Chambers of Commerce to the National Airlines Council of Canada, as well as CN itself [see “CN calls for government intervention …,” News Wire, Aug. 21, 2024]. But as of Wednesday evening, Prime Minister Justin Trudeau, Labor Minister Steven MacKinnon, and Transport Minister Pablo Rodriguez were only urging the two sides to reach an agreement. As of 7:30 a.m. CT today, they have not commented since the lockouts began.

The two railroads move an estimated CA$1 billion in cargo daily, according to the Railway Association of Canada. The lockout of traffic controllers also halts dispatching of some or all commuter rail lines in Vancouver, Toronto, and Montreal, affecting an estimated 32,000 passengers daily. Just one VIA Rail Canada line — a remote service between Sudbury and White River, Ontario, that operates on CPKC — is expected to be affected.