Canadian Pacific (CP) Railway Ltd. late on March 16 issued 72-hour notice to the Teamsters Canada Rail Conference (TCRC) of its plan to lock out employees at 00:01 ET on March 20, 2022, if the union leadership and the company are unable to come to a negotiated settlement or agree to binding arbitration.
TCRC represents more than 3,000 union members who work as engineers, conductors, and train and yard employees for CP. TCRC served a notice of dispute to the federal labor minister in February, citing issues related to wages, benefits, and pensions (GM Feb. 25, p. 1). Some 96.7 percent of TCRC members then voted in favor of a strike action (GM March 4, p. 1).
“For the sake of our employees, our customers, the supply chain we serve, and the Canadian economy that is trying to recover from multiple disruptions, we simply cannot prolong for weeks or months the uncertainty associated with a potential labor disruption,” said Keith Creel, CP President and CEO. “The world has never needed Canada’s resources and an efficient transportation system to deliver them more than it does today. Delaying resolution would only make things worse. We take this action with a view to bringing this uncertainty to an end.”
CP said it tabled an offer on March 15 that addressed a total of 26 outstanding issues between the parties, including an offer to resolve the TCRC’s key issues of wages, benefits, and pensions through final and binding arbitration. The TCRC leadership rejected CP’s offer on March 16.
“It was well known that CP was going to force a work stoppage and lockout our members. They have done just that,” said TCRC Spokesperson Dave Fulton in a March 16 statement. “At the bargaining table, CP continues to dismiss our members’ demands and are unwilling to negotiate the issues they have created. We remain committed to reaching an acceptable agreement that addresses our members’ issues. Our members are fully engaged and will be ready in the event CP carries out the notice.”
CP and TCRC leadership have been meeting daily with federal mediators, but CP said the two parties remain far apart. The railroad said it has commenced its work stoppage contingency plan and will “work closely with customers to achieve a smooth, efficient and safe wind-down” of CP’s Canadian operations.
“We are deeply disappointed that we find ourselves in this position,” said Creel. “CP will continue to bargain in good faith with the TCRC leadership to achieve a negotiated settlement or enter binding arbitration. The Canadian economy could avoid all the pain and damage of a work stoppage if the TCRC would agree to binding arbitration, an outcome we continue to push for.”
In response to the lockout notice, Minister of Labor Seamus O’Regan Jr. issued a statement on March 16 urging both parties “to consider making the compromises necessary to reach a deal that is fair for workers and the employer.” O’Regan said he and the Minister of Transport Omar Alghabra continue to monitor the situation closely.
“Our government respects and has faith in the collective bargaining process, because we know that the best deals are the ones reached by the parties at the bargaining table,” O’Regan said. “Canadians have worked together throughout the pandemic to find solutions to our collective challenges. They expect the same from such actors in our national economy.”
Fertilizer Canada on March 17 called on CP and TCRC to commit to binding arbitration, and asked the federal government to “be prepared to enact legislation to swiftly put an end to the work stoppage,” if necessary.
“A work stoppage compromises Canada’s position as a leading global fertilizer supplier and could result in fertilizer production facilities being forced to shut-in production, impacting Canadian workers, the economy, and food security,” Fertilizer Canada said. “Our members, which include manufacturers of essential nitrogen and potash fertilizers, are already beginning to feel the impacts as preparation for a work stoppage begins.”
Fertilizer Canada stressed that the fertilizer supply chain is already experiencing supply challenges compounded by the war in Ukraine. It added that there is no other alternative transportation method that currently has capacity or can be brought online in time to mitigate the impact of the work stoppage.
“While we respect the collective bargaining process, Canada cannot afford another disruption to our supply chain,” said Karen Proud, President and CEO of Fertilizer Canada. “With 75 percent of all fertilizer in Canada moved by rail, our members are critically dependent on rail service to move products across the country and into international markets.”
Speaking at the Saskatchewan Association of Rural Municipalities annual convention in Regina on March 16, Saskatchewan Premier Scott Moe called on the federal government to classify railworkers as essential and to ensure back-to-work legislation is passed if the strike proceeds.
“In no way does this undermine any of the negotiations that happen at any collective bargaining table,” Moe said. “This
[strike]
simply cannot happen. And I trust and I hope that the federal government is already considering some degree of what back-to-work legislation would look like should they need it, should there be a lockout or a strike in the days ahead.”
U.S. lawmakers also weighed in during the week. U.S. Sens. Kevin Cramer (R-N.D.), Steve Daines (R-Mont.), Mike Braun (R-Ind.), and John Hoeven (R-N.D.) on March 15 sent a letter to Canadian Prime Minister Justin Trudeau urging his cabinet to take action to prevent a strike, saying a work stoppage “would have significant market implications from agriculture to energy.” The letter noted that up to 15 percent of CP’s business is fertilizer shipping.
“We request you be proactive to avert any sort of disruption and prioritize the free-flow of goods and services between the U.S. and Canada,” the letter said. “However, if a labor dispute cannot be avoided, we urge the Canadian federal government and parliament to act swiftly to end the disruption quickly to avoid further harm to our respective economies.”
The senators’ letter follows an earlier appeal to President Joe Biden by The Fertilizer Institute (TFI), the Agricultural Retailers Association (ARA), and 19 other members of the Agricultural Transportation Working Group, who on March 7 requested that the administration work with the Canadian government to avert a major railway strike and to rescind the cross-border vaccine mandate for workers moving essential commerce (GM March 11, p. 1).