After failing to reach a new labor deal with a Teamsters union by the early morning deadline on Aug. 22, Canada’s two largest freight railroads have locked out over 9,000 rail workers.

The simultaneous work stoppage on Canadian National Railway’s (CN) and Canadian Pacific Kansas City’s (CPKC) rail network spanning Canada could lead to shipment disruption of manufactured goods and commodities into the U.S.

Bulk and hazardous commodities, such as coal, chemicals and food grains, may be most impacted by a prolonged disruption in rail service due to limited truckload capacity, lack of equipment or safety regulations that make alternatives limited or, in some cases, impossible.

CPKC is calling to resolve the labor negotiation with the Teamsters Canada Rail Conference through binding arbitration.

Rail’s Final Offer Goes Unanswered

CPKC said its final enhanced offer to the Teamster’s Train and Engine division (representing roughly 3,200 locomotive engineers, conductors and train and yard workers) was a three-year status-quo contract renewal with several items that the TCRC negotiating committee requested, including “competitive wage increases that are consistent with recent settlements with other railway unions.”

There remains a sticking point.

“The only item we wish to negotiate remains reasonable adjustments to the timing of held-away from home pay that resets the negotiated buffers that existed before Transport Canada implemented work rest rule changes last year, that by default eliminated the buffer. The status quo-style offer fully complies with new regulatory requirements for rest and does not in any way compromise safety.”

CPKC also proposed a renewed agreement with “competitive wage increases” to the approximately 80 rail traffic controllers represented in by the Teamsters’s T Rail Traffic Controller division.

Similarly, CN said it offered improved wages, less work days in a month and other offers.

“The TCRC leadership continues to make unrealistic demands that would fundamentally impair the railway’s ability to serve our customers with a reliable and cost-competitive transportation service,” CPKC officials said.

The added: “Unfortunately, the TCRC leadership has repeatedly demonstrated this type of behaviour, which ultimately has required federal intervention in some form in nine of the 10 rounds of collective bargaining negotiations since 1993.”

Lead Image Source: CN/Jan Vozenilek