Shipping and Logistics
CP Taking 'Structured Shutdown' of Canadian Rail Ops After Labor Talks Collapse
Written by Michael Cowden
March 20, 2022
Canadian Pacific is engaged in a “structured shutdown” of its train operations across Canada after negotiations between the company and the Teamsters Canada Rail Conference (TCRC) soured.
Each side blamed the other for the work stoppage.
“The TCRC is well aware of the damage this reckless action will cause to the Canadian supply chain,” CP President and CEO Keith Creel said on Sunday, March 20.
The shutdown is happening because the railway “moved the goalpost when it came time to discuss the terms of final and binding arbitration,” TCRC spokesperson Dave Fulton said.
The union said what it claims is a lockout will add “an unnecessary layer of insecurity” to a supply chain already stretched by the Covid-19 pandemic, the fallout from the war in Ukraine and “exploding commodity prices.”
Case in point: SMU’s benchmark hot-rolled coil price saw its biggest week-over-week gain ever last week.
Traditional issues such as wages and pensions are major sticking points. “However, also at issue in these talks are working conditions that call into question the railway’s capacity to recruit and retain workforce members,” the union said.
The Teamsters represent approximately 16,000 rail transportation workers in Canada, according to the union. At CP, the figure is roughly 3,000 locomotive engineers, conductors, train and yard workers across Canada, the company said.
Negotiations have been unsuccessful since September, and union members had already voted to authorize a strike.
By Michael Cowden, Michael@SteelMarketUpdate.com
Michael Cowden
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