August 22, 2024 – In a stunning about face, the Canadian minority government has now stepped into the rail strike situation less than 24 hours after they said that they would not interfere. The government however is currently powerless if the union does not heed its request for binding arbitration. The current information is that the union will still use delaying tactics as it may try to force the government to enact back to work legislation, and the earliest that the government can call parliament together is in September. Therefore, we urge our customers that although this is cautiously optimistic news, the delays and strike/lockout is not over until the union stops its strike action. More news as it develops.
August 22, 2024 – As forecasted, an agreement was not reached and there is now a nationwide rail strike in Canada. Canaan Transport has been diligently advising our customers of their options including transloading their urgent cargo to avoid delays. We will continue to update our clients as the rail strike’s effects are felt in the coming days.
August 21, 2024 – With no announcements from the rail lines or their unions, we brace for the beginning of the strike/lockout. Although Maersk has now advised that they no longer have a ban on cargo to Canada, we are already hearing reports of a turbulent wind-down in operations. Although many of Canaan’s customers have already known about the pending rail strike, we are still getting calls from customers that were unaware of the developments. Our current forecast is that this strike may take upwards of 2 weeks before a negotiated settlement and/or binding arbitration is ordered, given the weakness of the current Liberal minority and its dependence on the NDP.
August 20, 2024 – As the reality of a nationwide rail strike grows closer day by day, carriers are now taking action to limit their exposure. Maersk is the first carrier to ban all Canada bound cargo that requires an inland move such as goods going to Toronto. Canaan Transport forecasts that other carriers will be making parallel moves such as this until the rail situation has been settled. More news as it develops.
August 19, 2024 – Amidst the background of a Canada wide rail strike, two other potential strikes are causing concern. Here are updates on the Port of Vancouver and the US East coast ports potential strike:
On Friday, the BC Maritime Employers Association (BCMEA) and International Longshore and Warehouse Union (ILWU) Local 514 participated in a case management call to discuss continuation of the Canada Industrial Relations Board hearing to address the union’s DP World (Canada) Inc. pay and manning proposal, which the BCMEA alleges to be illegal, constituting the union bargaining in bad faith. The hearing will continue from September 11 to 17. At the time of writing, neither party had issued 72-hour notice of strike or lockout, nor have there been any labour disruptions.
And in other news, it looks like retailers are rushing cargo to arrive into the US prior to October 1st to avoid a likely US east coast port worker’s strike. More news as that develops.
August 19, 2024 – More than 9,000 workers at Canada’s two major railways could be either on strike or locked out as of Thursday, disrupting supply chains relied upon by many industries. The union representing thousands of workers at Canadian Pacific Kansas City Ltd. says it has served a 72-hour strike notice to the railway. The Teamsters Canada Rail Conference issued a news release saying unless the parties can reach a last-minute agreement, workers will be off the job as of 12:01 a.m. Eastern time Thursday. Not long after the union’s statement, CN Rail issued a notice that it intends to lock workers out at that same time unless an agreement or binding arbitration is achieved. The company says no meaningful progress has occurred despite weekend labour negotiations. “Unless there is an immediate and definite resolution to the labour conflict, CN will have no choice but to continue the phased and progressive shutdown of its network which would culminate in a lockout,” the company said in a release. Both CPKC and Canadian National Railway Co. have been halting shipments in preparation for potential work stoppages by a combined 9,300 workers at the two railways. Canaan Transport is currently embargoing certain export shipments in preparation of a rail strike which would lead to significant demurrage and chassis charges for customers who are not prepared.
August 15, 2024 – In anticipation of labour action, both rail lines are now refusing to accept any refrigerated cargo and/or DG cargo effective immediately and until the unpredictability of labour action is removed. Export shipments are currently being accepted at the terminal but this could change without notice.
August 13, 2024 – Last week, the British Columbia Maritime Employers Association (BCMEA) and the International Longshore and Warehouse Union (ILWU) Local 514 continued their participation in a Canada Industrial Relations Board (CIRB) hearing. The focus of the hearing was the union’s pay and manning proposal for DP World (Canada) Inc., which the BCMEA alleges to be illegal, accusing the union of bargaining in bad faith. The CIRB hearing has concluded for the week, and additional dates are required to continue the proceedings. This week, the parties will engage in a case management call to discuss the next steps in the ongoing dispute. As of August 12, at 1:30 PM PT, neither party has issued a 72-hour notice of strike or lockout, and there have been no labour disruptions. Cargo and passenger operations at British Columbia’s ports continue to function without interruption.
August 12, 2024 – As the dust settles on the CIRB decision last week, it is apparent to all that CN, CPKC and its unions are no closer to an agreement than before. Both CN and CPKC have issued lockout notices for August 22nd unless an agreement is reached. The federal government is not taking any substantive action to avoid a nationwide shutdown of its rail lines. Canaan Transport has begun advising its customers on the impacts of this upcoming strike on their individual and specific shipments.
August 9, 2024 – In a significant development today, the Canada Industrial Relations Board (CIRB) has announced that it will not block the Teamsters Canada Rail Conference’s (TCRC) right to take job action. This decision comes after months of tense negotiations between the union and Canada’s major railways, Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC). The CIRB, a government body responsible for overseeing industrial relations in Canada, has ordered a 10-day cooling-off period starting immediately. Following this period, the union is required to provide a mandatory 72-hour notice before any strike action can commence. This means that the earliest possible date for a rail strike would be Thursday, August 22, 2024. If the strike proceeds as predicted on August 22, it could have widespread implications for supply chains, particularly in sectors such as agriculture, manufacturing, and retail.
The 10-day cooling-off period is designed to give both parties a final chance to reach an agreement and avoid a strike that could severely impact the Canadian economy. However, given the current state of negotiations, stakeholders should remain vigilant and plan accordingly for a possible work stoppage.
Canaan Transport is not optimistic of any agreement prior to August 22nd so we are advising customers to ensure that they are aware of potential impacts on their shipments effective immediately.