10,000 railway workers of CN and CPKC have provided a 72-hour notice of intent to strike.
By Andrew Joseph, Farms.com; Image via: James_Gabbert/iStock/Getty Images Plus photo
As predicted, as we near the harvest of summer Canadian crops, unionized Teamsters workers at Canadian National (CN) and Canadian Pacific Kansas City (CPKC) have served notice that they may strike as early as this Thursday, August 22.
Conversely, nearly 10,000 workers could be locked out by the two railroads.
On Sunday, August 18, 2024, the Teamsters Canada Rail Conference (TCRC) stated that it had informed the railroads of a 72-hour notice to strike, and unless the workers and the railroads can reach an agreement, the workers plan to be off the job at 12:01 AM Eastern Standard Time on August 22.
CN issued its own announcement a few hours later, notifying all that they would lock out the workers unless an agreement or binding arbitration was found. CPKC had previously announced its intention to lock out workers.
CN said: “Unless there is an immediate and definite resolution to the labour conflict, CN will have no choice but to continue the phased and progressive shutdown of its network, which would culminate in a lockout.”
The legal process of the strike officially kicked off on May 1, 2024, when the team members first voted to authorize strikes at CN and CPKC should they feel the need to. They could have gone on strike as early as May 22, 2024—so the threat of a strike has been known for months by all parties.
While a rail strike would affect numerous Canadian industries, the perishable aspect of Canadian agriculture—though never publicly stated—was always a good target for the workers.
The product needs to be moved across Canada to customers before it spoils. In other words, the union wants to bargain with the railroads before it comes to that.
The Railway Association of Canada (RAC) noted that worker shortages are the crux of the strike issue. With a shortage of workers, those already in place have to work longer hours to perform all the jobs that need to be performed to keep the rails humming.
Unfortunately, that causes crew fatigue as there are not enough people to spell them. That can also cause problems for the railway, as safety issues could become compromised through worker fatigue.
It wouldn’t be a strike if the workers didn’t want something for themselves, as benefits and pensions are also key.
Although CN and CPKC have stated that they are continuing to hire more workers and are willing to agree to some of the union demands on benefits and work rules, nothing has been agreed upon by the factions.
Despite the willingness to agree, there have been some negative aspects at play.
After CN asked the federal government to impose binding arbitration, federal Labour Minister Steven MacKinnon denied the request on August 15, telling CN they should bargain in good faith.
The TCRC accused CN of being “willing to jeopardize the Canadian economy and hold supply chains hostage to improve their bottom line.”
CPKC had said it would continue to bargain in good faith and also re-offered to resolve the situation via binding arbitration.
Specific to Canadian agriculture, 94 percent of its grain is moved by the railways, much of which goes to export markets.
If a rail strike occurs, it means that grain elevators will not be able to accept crops, which in turn means farmers will not receive payment. No payment means no money for the farmers and their families. Also, they can’t pay workers or buy the things needed for the next growing season.
And then there’s how Canada looks in the global market. Being unable to be a reliable source to purchase crops from means purchasing agents for other countries and companies will look elsewhere to get what they need. Canada becomes unreliable.
And the Canadian consumer will also find itself facing shortages and inconveniences, including higher prices.