Canadian Pacific (CP) Railway Ltd. and the Teamsters Canada Rail Conference (TCRC) on March 22 confirmed that they had agreed to binding arbitration, ending a two-day work stoppage and allowing CP to resume normal operations.
“CP is pleased to have reached agreement with the TCRC negotiating committee to enter into binding arbitration and end this work stoppage,” said CP President and CEO Keith Creel. “This agreement enables us to return to work effective noon Tuesday local time to resume our essential services for our customers and the North American supply chain.”
TCRC represents more than 3,000 union members who work as engineers, conductors, and train and yard employees for CP, 96.6 percent of whom voted in favor of a strike action in early March over contract issues related to wages, benefits, and pensions (GM March 4, p. 1).
The work stoppage at CP commenced early on March 20 following CP’s announcement on March 16 that it had issued a 72-hour lockout notice to TCRC employees (GM March 18, p. 1). By committing to binding arbitration, both parties have now agreed to accept the decision of an arbitrator with the Canadian Federal Conciliation and Mediation Services to resolve the dispute.
“The decision to agree to final and binding arbitration is not taken lightly,” said Dave Fulton, TCRC spokesperson, on March 22. “While arbitration is not the preferred method, we were able to negotiate terms and conditions that were in the best interest of our members.”
Both sides blamed the other for the work stoppage, with TCRC charging that CP had threatened to accelerate the lockout deadline and CP claiming that TCRC withdrew its services before the deadline for a strike or lockout could legally take place. TCRC on March 22 said wages and pensions remain stumbling blocks in the negotiations. The union said it would make no further comments to the media until the arbitration process is complete.
Fertilizer Canada on March 22 issued a statement saying it was pleased that the work stoppage had ended, but pressed for a “permanent solution” to the problems afflicting Canada’s supply chain, including frequent labor disputes. The trade group noted that the fertilizer industry since 2019 has dealt with strikes at Canadian National (CN) Railway Co. and the Port of Montreal, in addition to the current CP dispute.
“Our member companies operate in a global marketplace and need a transportation system that is not under threat of disruption every two years,” the trade group said. “While Fertilizer Canada respects the collective bargaining process, we are disappointed the outcome of CP Rail’s negotiation resulted in a work stoppage. The impacts of the two-day stoppage will be felt for weeks to come.”
That sentiment was echoed by other fertilizer industry participants during the week. Several Canadian sources interviewed by Green Markets conveyed a strong sense of relief that the CP strike ended so quickly, but expressed ongoing concerns about delivery delays that may stretch to 3-4 weeks on rail shipments in Western Canada as a result of the stoppage.
Karen Proud, President and CEO of Fertilizer Canada, said a work stoppage has “crippling effects on the economy and agriculture sector,” especially during the spring planting season, when 75 percent of all fertilizer produced and used in Canada moves by rail. She noted as well that there are several other collective agreements expiring in 2022, including one at CN.
“Canada cannot afford for these agreements to expire and another work stoppage to occur,” she said, adding that the fertilizer supply chain challenges have only been compounded by the war in Ukraine. “It is now vital the federal government develop a long-term approach to fixing problems within the supply chain so Canada can continue to be a reliable trading partner.”
While some Canadian lawmakers have urged the federal government to classify railworkers as essential so future labor-related work stoppages are avoided (GM March 18, p. 33), Labor Minister Seamus O’Regan this week warned that doing so would take away the rights of workers to bargain, The Canadian Press reported.