CP Rail Strike Averted, but Walkout Threat Persists

A strike at Canadian Pacific Railway Ltd. (CP) that had been planned for midnight on April 20 was avoided at the last minute after the Teamsters Canada Rail Conference (TCRC) and the International Brotherhood of Electrical Workers agreed to a recommendation from federal mediators to vote on a contract offer from CP.

The two unions represent nearly 3,400 CP train conductors and engineers, and a walkout would have crippled CP’s operations just as the spring planting season gets underway in Western Canada and the Northern Plains, a critical time for the fertilizer industry (GM April 20, p. 1).

“This is tremendous news for our employees, our customers, and the Canadian economy,” said CP CEO Keith Creel in an April 20 statement. CP had reportedly begun a partial network shutdown as the strike deadline neared, but the company said it would immediately execute a safe and structured startup of operations to avoid any rail disruptions, Bloomberg reported.

The decision by the unions to allow the Canadian Industrial Relations Board to administer a ratification vote will probably only delay rather than avert the strike, however. While details of CP’s offer were not released and the actual date of the vote has not been scheduled, Bloomberg reported that union leaders were urging members to reject the offer.

“CP succeeded in delaying the inevitable,” said TCRC President Doug Finnson in a statement . “The government will bring this ridiculous offer to our members and we strongly recommend that members vote against it.” Long hours, worker fatigue, and cuts that CP made to increase profitability are reportedly on the list of grievances the unions have as they negotiate a new contract.