Canadian Shippers and Producers Face Potential Railroad Strike Again

Canadian shippers and producers are once again holding their breath ahead of a possible strike by thousands of rail workers this month that would halt freight traffic, clog ports, and disrupt industries, The Canadian Press reported (8-5-24).

John Corey, President of the Freight Management Association of Canada, whose members include port authorities, manufacturers, and other large shippers such as retailers Canadian Tire and Home Depot, summed up the potential strike and its ramifications this way: “The railways are two ribbons that go east to west, and there’s not much alternative if you cut those two ribbons. The ports become useless. Nothing moves anywhere.”

Anxiety over a strike by some 9,300 employees at Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC) already cost the companies business after customers sought to reroute cargo in recent months following approval of a strike mandate by union members in May.

Then-labor minister Seamus O’Regan, in an apparent move to delay the disruption, asked the labor board to review whether a work stoppage would jeopardize Canadians’ health and safety. The Canada Industrial Relations Board is examining whether there are critical shipments—chlorine for water and gasoline for cities, for example—that must continue in the event of job action, putting any potential work stoppage on pause until a ruling is made.

O’Regan’s replacement as federal labor minister, Steven MacKinnon, met Monday morning with leaders from the two main railways and the Teamsters Canada Rail Conference union to discuss the consequences for the economy and supply chain.

MacKinnon told The Canadian Press on Friday that the parties have failed to treat the issue with “sufficient urgency,” noting that talks have all but broken down over the past few weeks. The minister suggested that the two sides need to hash out a deal themselves rather than relying on government intervention, such as back-to-work legislation.

All parties say they want to continue negotiating, but each blames the other side for the communication breakdown. CN and CPKC are bargaining separately with the Teamsters union toward distinct collective agreements, though two strikes could happen simultaneously.