Shipping and Logistics
Union lockout shuts down Canadian railways
Written by Ethan Bernard
August 22, 2024
Two rail providers have locked out union workers at their operations in Canada.
CN and Canadian Pacific Kansas City (CPKC) said they locked out members of the Teamsters Canada Rail Conference as of 12:01 a.m. ET on Thursday, Aug. 22.
“Without an agreement or binding arbitration, CN had no choice but to finalize a safe and orderly shutdown and proceed with a lockout,” CN said in a statement on Aug. 22.
At the same time, CPKC cited “binding arbitration” as the way to move forward. So far, the Teamsters have refused this option.
“At this time, the responsible path forward for the union, the company, our customers, the Canadian economy and North American supply chains and the public interest is for TCRC and CPKC to engage in binding arbitration to resolve all outstanding disputes,” CPKC said in a separate statement on Thursday.
CPKC said its actions are “to protect Canada’s supply chains, and all stakeholders, from further uncertainty and the more widespread disruption that would be created should this dispute drag out further, resulting in a potential work stoppage occurring during the fall peak shipping period.”
CN claims that the the Teamsters have not shown any “urgency or desire to reach a deal that is good for employees, the company, and the economy.”
“We urge the Teamsters to engage in these negotiations with the urgency and importance that this situation requires,” CN added.
Teamsters clap back
The union, which represents close to 10,000 workers at both CN and CPKC, sees the situation through a different lens.
“Despite months of good faith negotiations on the part of the Teamsters Canada Rail Conference, parties remain far apart, and both CN and CPKC have begun their lockout as of 00:01 today,” the Teamsters said in a statement on Thursday.
The union noted that, over the past several days, they have put forward “multiple offers, none of which were seriously considered by either company.”
“The main obstacles to reaching an agreement remain the companies’ demands, not union proposals,” the union added.
Additionally, the Teamsters said they remain at the bargaining table with both companies.
Canadian government responds
Canadian Prime Minister Justin Trudeau said the government will soon announce how it plans to solve the nationwide freight rail interruption, according to a Reuters article.
Speaking to reporters in Quebec, Trudeau on Thursday emphasized the need for a quick solution, the article said.
Ethan Bernard
Read more from Ethan BernardLatest in Shipping and Logistics
Reibus: Flatbed, dry van rates ticked up post-hurricanes
After closing the third quarter -3.84% on a y/y basis, our first look at fourth-quarter flatbed spot rates puts us virtually flat y/y, coming in at -0.68%.
Leibowitz: Thorny issues remain as ILA-USMX talks kicked into 2025
On Thursday, the International Longshoremen’s Association (ILA) and the US Maritime Alliance (USMX), representing carriers and port operators on the East and Gulf Coasts, announced a three-and-a-half-month extension of the recently expired collective bargaining agreement. The extension kicks the can down the road until Jan. 15, 2025, after the 2024 election and the certification of the results on Jan. 6.
Ports strike over as longshoremen reach tentative pact with employers
The International Longshoreman's Association (ILA) union and the United States Maritime Alliance (USMX) reached a tentative agreement on wages on Thursday evening. The move ends a strike at East Coast and Gulf Coast ports that began on Tuesday and that had threatened significant supply-chain disruptions.
ILA rejects 50% raise, strikes ports on East Coast, Gulf Coast
The International Longshoremen’s Association (ILA) launched a strike just after midnight on Tuesday at East Coast and Gulf Coast ports. The work stoppage spans from New England to New Orleans. It came after a last-ditch offer by the United States Maritime Alliance (USMX), which represents maritime employers, failed to meet union demands.
Calls for talks as coastwide labor strike could hit supply chains on Tuesday
Unless a last-minute deal is struck by midnight on Monday, a massive work stoppage will hit ports up and down the East and Gulf Coasts on Tuesday and cause widespread supply chain disruption. Master contract negotiations remain stalled between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX). The employer group took […]