Canada’s two main railways have begun halting shipments ahead of a potential strike that could begin as early as next week, with the negotiation deadline slated for August 22.
“In the absence of reaching a timely tentative agreement or referring all outstanding matters to binding arbitration before the threat of a labour disruption, additional commodities will be subject to embargo,” reads an internal memo from Canadian National Railway Co.’s bargaining team, sent on Tuesday.
The memo, which was first obtained by the Canadian Press, said that the company had started to embargo hazardous goods, including toxic materials, chlorine and ammonia from the U.S. on Monday in anticipation of the strike.
Canadian Pacific Kansas City Ltd. said it would be temporarily banning traffic of such goods as well as others to ensure that no trains carrying them become stranded on the tracks, should a walkout start next week.
Teamsters Canada, the union representing the employees for both CN and CPKC, want to see concessions on issues of crew scheduling, rail safety and fatigue management.
“The situation has shifted from a possible strike to a near-certain lockout, with both carriers beginning to embargo shipments in preparation for a shutdown of their operations. CPKC has gone so far as to serve a formal lockout notice, starting August 22,” director of public relations for Teamsters Canada Christopher Monette told True North.
“We learnt of CN’s lockout plans through a media release,” he added.
CN’s latest update on the negotiations was released last Friday, where the company said that “no progress has been made as the TCRC has not engaged meaningfully at the negotiating table.”
“While CN is willing to keep negotiating with the TCRC, the Company has lost faith in the process and is concerned that a negotiated deal is no longer possible without a willing partner. Therefore, the Company formally requests the Minister of Labour’s intervention,” reads the statement.
CN went on to say that it has made four offers to the TCRC, including points on wages, rest and labour availability, all of which comply with federal safety regulations.
However, all offers have been rejected thus far.
“It is the government’s responsibility to ensure the health and safety of Canadians,” said Labour Minister Steven Mackinnnon in a post to X. “It is the responsibility of unions and employers to negotiate deals at the bargaining table.”
“The parties in this dispute have a responsibility to Canadians,” wrote Mackinnon in a statement. “I call upon the parties to stay at the bargaining table and continue holding productive and substantive discussions that meet the needs of this moment. A negotiated agreement is the best way forward.”
Monette said that railroaders work “gruelling on-call schedules, making it extremely difficult to consistently show up to work rested and fit for duty.”
“CPKC wants to gut the collective agreement of safety-critical fatigue provisions. Some of the targeted language currently helps workers better anticipate when they might be called to work. Gutting these provisions would force train crews to stay awake even longer, increasing the risk of derailments and other accidents. CPKC has also failed to address the understaffing of rail traffic controllers,” said Monette. “Meanwhile, CN is targeting fewer articles around fatigue, but still enough to raise safety concerns.”
According to Monette, CN is demanding extended workdays in all provinces west of Ontario as well as implementing a forced relocation scheme, which would mandate workers to have to move across the country to fill labour shortages wherever necessary.
“From the very beginning, rail workers have only ever sought a fair and equitable agreement. Unfortunately, both rail companies are demanding concessions that could tear families apart or jeopardize rail safety. Rail workers have fought for a safer and more humane industry for decades, and we will not accept moving backwards,” said Paul Boucher, President, Teamsters Canada Rail Conference.
The two railway companies warned that they are prepared to lock out 9,300 engineers, conductors and yard workers on Aug. 22 if the ongoing negotiations don’t result in new contracts being finalized over scheduling and wages.
A work stoppage would result in major supply chain disruptions across Canada, affecting industries like agriculture, mining, forestry and public health.
“Supply chains require predictability to function properly. Unfortunately, even the possibility of an unpredictable labour disruption and subsequent disorderly shutdown creates a safety risk and unacceptable uncertainty for industries that depend on rail. Prolonged uncertainty will impact consumers and workers across industries and across Canada,” reads CN’s statement.