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Lack of progress in Canadian rail talks raises possibility of May strike

By Ari Ashe

A stalemate over a new collective bargaining agreement for Canadian rail conductors and engineers has set the stage for vote by union members that could result in a strike notice being issued in May .

The workers , represented by the Teamsters Canadian Rail Conference ( TCRC ), will vote from April 8 to May 1 on whether to authorize a strike against Canadian National Railway ( CN ) and Canadian Pacific Kansas City ( CPKC ) as soon as May 22 .

A strike could halt intermodal service to and from all container terminals in Canada , affecting about 50,000 TEUs weekly in imports , according to a Journal of Commerce analysis of data submitted to the Association of American Railroads and Intermodal Association of North America .

Negotiations between the railroads and the TCRC have hit a stumbling block over salary and mandatory rest periods . The Teamsters represent more than 9,000 conductors and engineers — 6,000 at CN and 3,200 at CPKC .

“ With the prior collective bargaining agreement , we took one step forward ,” a TCRC spokesperson told the Journal of Commerce . “ Now , our sense of the negotiations is that both rail companies are trying to take us three steps backwards .”

“ Our sense of the negotiations is that both rail companies are trying to take us three steps backwards .”

Talks are continuing with the help of a federal conciliator who can broker a deal up until May 1 , when a 21-day cooling off period begins before any strike could occur . The union would then have to issue a 72-hour strike notice to the two Canadian railroads before taking action .

CN and CPKC say they have made proposals varying in length that will ensure conductors and engineers receive competitive wages , are well rested and have a proper worklife balance .

“[ Our offer will provide for ] higher income and more predictable work-life balance by shifting to a predictable scheduling model with assigned days off ,” a CPKC spokesperson told the Journal of Commerce . “ The time-based model would modernize the collective agreement with 21st century practices … The existing collective agreement is more than 440 pages ; it could be reduced to approximately 100 pages .”

Negotiations between CN , CPKC and the TCRC have stalled amid disagreements over salary and mandatory rest periods . Jim Lambert / Shutterstock . com

CPKC has two offers on the table , one that would simplify the prior collective bargaining agreement and a second offer that would “ maintain the status of the quo ” within rules established last year by Transport Canada .

CN also offered a deal to switch salary from a per-mile basis to an hourly wage .

“ If our trains run on a schedule and our interactions with our customers run on a schedule , why shouldn ’ t employees benefit from running on a schedule as well ?” a spokesperson for CN said . “ We believe that by offering stable and predictable schedules with wage increases that would be paid hourly , we would be improving the quality of life of our railroaders and improve safety .

“ Furthermore , by moving to scheduled work , employees would know well in advance when they work and when they take time off ,” the spokesperson added .

New rules for workers

The TCRC last went on strike in 2019 , when CN conductors and yard workers walked off the job for eight days . Lawmakers in Ottawa passed the Transport Canada Duty and Rest Period Rules covering hours of service and mandatory rest periods , which went into effect last year .

“ The situation has improved marginally as the government updated duty and rest rules ,” the TCRC spokesperson said . “ The rules are designed to work in conjunction with the protections that we have built into our existing collective bargaining agreements , not replace them . We also believe the railroads are not implementing them correctly and exploiting loopholes .” The union noted that a Canadian judge last June ruled CPKC was in contempt of court for requiring train crews to work excessive hours .

Separately , the TCRC is also negotiating a contract with CPKC to cover rail traffic controllers . A source with knowledge of the situation told the Journal of Commerce that a strike by controllers would have much less of an impact than conductors and engineers because senior managers are generally cross-trained to act as traffic controllers if necessary .

An anti-scab law now being debated in the Canadian parliament to prevent non-union employees from taking over union jobs during a strike would not go into effect until at least 2025 , if not later , if approved .

email : ari . ashe @ spglobal . com

40 Journal of Commerce | April 22 , 2024 www . joc . com