August 7, 2024 – On Monday, August 5, the rail lines and the union met with the Minister of Labour, Steven MacKinnon and Minister of Transport, Pablo Rodriguez to discuss the impact of a work stoppage on Canadian supply chains. Negotiations have been on hold since former Minister of Labour Seamus O’Regan requested clarity from the Canada Industrial Relations Board (CIRB) regarding essential services during a work stoppage. The response from the CIRB is expected by August 9. No work stoppage can occur until either party files the required 72-hour notice after the CIRB issues its decision, subject to any extension of the cooling-off period that may be ordered by the CIRB. Negotiations will resume today with government advisors in the room.
August 6, 2024 – CPKC participated on Monday in a meeting with the Teamsters Canada Rail Conference (TCRC), Labour Minister Steven MacKinnon and Transport Minister Pablo Rodriguez, regarding the status of bargaining between CPKC and the TCRC. CPKC highlighted its strong desire to avoid a work stoppage on its Canadian rail network, which would be damaging to the interests of all stakeholders. The railway reviewed its offers proposed to the TCRC to date and noted its desire to continue negotiations in good faith. It committed to meeting with the TCRC this week to continue bargaining and remains hopeful that renewed agreements can be reached. CPKC also reiterated its standing offer to resolve this matter through binding arbitration should negotiations be unsuccessful. The Canada Industrial Relations Board (CIRB) intends to issue a decision on the Ministerial Referral regarding the maintenance of activities during a potential railway work stoppage by Friday, August 9. A work stoppage cannot occur until the CIRB issues its decision, subject to any potential extension of the cooling-off period ordered by the CIRB and provided a minimum of 72-hours’ notice is given, as required by the Canada Labour Code.
August 2, 2024 – With labour negotiations at a standstill, a Canadian rail strike is likely to occur in late August, Canadian Pacific Kansas City CEO Keith Creel said Tuesday. CPKC and the Teamsters Canada Rail Conference are still talking but remain far apart on a new
contract, Creel said on the railway’s second quarter earnings call. The Canadian Industrial Relations Board has said it will release a decision by August 9 on what commodities are vital to health and safety and must keep moving during a work stoppage. Members of the TCRC, which represents engineers and conductors on CPKC and Canadian National, have voted to authorize a strike that could begin with 72 hours notice once the CIRB decision is issued.
July 20, 2024 – The BCMEA and ILWU Local 514 are set to resume the Canada Industrial Relations Board (CIRB) hearing from August 6 to 9. This hearing will address the union’s DP World (Canada) Inc. manning proposal, which the BCMEA alleges to be illegal, constituting the union bargaining in bad faith. Following a scheduled case management meeting with the CIRB that occurred on July 24, ILWU Local 514’s legal counsel notified the parties that the union would be conducting an industry-wide strike vote, inclusive of all its members, in the coming weeks. The union noted that it will take at least until August 9 to complete the vote. The union’s legal counsel committed that no 72-hour strike notice would be served until the vote was completed, if at all. ILWU Local 514’s decision to proceed with an industry-wide strike vote is predictable, according to the BCMEA, given the CIRB’s July 7 decision that deemed the union’s previous strike vote and related strike notice to DP World (Canada) Inc. illegal.
July 26, 2024 – This is an update on the status of rail operations servicing the Port of Vancouver that have been impacted by wildfires in western Canada. Rail service on CN’s mainline through Jasper, Alberta, has been halted due to wildfires in the area. This rail line carries cargo to and from the Port of Vancouver. The situation remains fluid with emergency response services focused on preservation of life and structures. CN is currently undertaking track and rail asset inspections to determine restoration requirements in the fire-affected area. The length of the rail line closure in the Jasper region is unknown at this time. CPKC and CN railways are coordinating CN train detours over CPKC track between Calgary, AB to Kamloops, B.C. Both railways have also deployed specialized fire suppression equipment and crews, along with other fire mitigation activities. Vessel delays and heightened anchorage demand are expected at the port in the coming days, due to rail disruptions impacting terminal operations.
July 24, 2024 – The Bank of Canada cut its key interest rate to 4.5 percent on Wednesday, with governor Tiff Macklem saying during a news conference that it would be reasonable to expect further rate cuts if inflation continues to ease. The cut was widely expected by economists after inflation eased in June. It marked the central bank’s second consecutive cut after last month’s meeting, when it cut rates for the first time since March 2020. "If inflation continues to ease broadly in line with our forecast, it is reasonable to expect further cuts in our policy interest rate," Macklem told reporters.
July 22, 2024 – The association representing East and Gulf Coast port employers said Thursday “there is forward movement” toward resolving some of the issues that have recently stalled talks. Labour contract negotiations hit a bump in June when the International Longshoremen’s Association canceled a planned meeting with employers association United States Maritime Alliance – more simply known as USMX – citing the use of automated truck gates at multiple ports. Since then, shippers and other stakeholders have expressed fears a labour deal will not be reached before the contract expires on September 30.
July 19, 2024 – A major IT outage that is affecting large corporations around the world is having an effect on cargo operations worldwide. Canaan Transport has not been directly impacted by the incident with CrowdStrike but many of our vendors and partners have been impacted. We will advise if there are any issues with our client’s shipments directly.
July 18, 2024 – Over 1,500 tonnes of export-import cargo is waiting at Dhaka Airport in Bangladesh, following a three-day strike by clearing and forwarding (C&F) agents protesting against the introduction of an express delivery system. The customs authority introduced a new rule on June 6 allowing courier services to assess cargo weighing below 30kg themselves, which helped importers receive cargo within two days – which also allowed for faster exports – but meant C&F agents lost business. Shipments handled by C&F agents are slower; importers must wait around a week for their cargo, resulting in factories being forced to delay production. The C&F agents temporarily suspended the strike on Tuesday, but warned they would strike again next Monday unless a memorandum of understanding facilitating their business is signed by Sunday. Boxes have piled up at Hazrat Shahjalal International Airport (HSIA), exacerbated by a government holiday following the strike, meaning cargo was not delivered for four days. Stakeholders say it will take at least a week to clear the backlog.
July 12, 2024 – The Canada Industrial Relations Board (CIRB) informed CPKC and CN today that it intends to issue its decision regarding the Ministerial Referral on the maintenance of activities by Friday, August 9. The CIRB will issue the decision without holding oral hearings. This development helps provide some predictability regarding the timelines for a potential work stoppage because the parties cannot legally take strike or lockout action prior to the CIRB issuing its decision and must then provide a minimum of 72 hours’ notice. The railways have asked the CIRB to extend the cooling-off period by 30 days and has proposed to the union that the parties resolve this labour dispute through binding arbitration. In summary, this means that the earliest a strike may happen is the 2nd week of August. Canaan Transport will be doing our best to mitigate any delays if a strike were to occur.