Shipping and Logistics

Union lockout shuts down Canadian railways

Written by Ethan Bernard


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

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