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.
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.