Canada’s unionized railway workers on Friday urged the federal labour tribunal to back their right to strike, adding more risk that Canadian Pacific Kansas City Ltd. and Canadian National Railway Co. could face further shutdowns of service across the country.
Officials with the companies and union argued their cases at a hearing before the Canada Industrial Relations Board as a range of industries warned of severe financial impacts from stalled supply chains amid a potentially protracted work stoppage. There was no indication on Friday when the board would issue its decision.
The country’s rail network shut down at midnight on Wednesday when CN locked out employees after months of separate contract talks failed to yield agreements. CPKC train crews and dispatchers went on strike at the same time. The Teamsters Canada Rail Conference represents almost 10,000 workers at the two companies.
Labour Minister Steven MacKinnon on Thursday directed the CIRB to order the railways to resume service, the workers to get back their duties and bargaining committees to enter binding arbitration.
CN declared its lockout over, but the union on Friday issued a strike notice at the Montreal-based rail carrier for Monday at 10 a.m. ET.
Despite the government’s move, CPKC workers remained off the job, and the union said it was consulting with its legal team about how to press its case that members should retain their constitutional right to strike.
“We’re here and we’re going to stay here,” François Laporte, national president for Teamsters Canada, told reporters at a picket line outside CPKC’s headquarters in Calgary. “We have a strike and we have a constitutional right to be here. That’s what we’re exercising.”
The union is considering challenging the Minister’s decision in Federal Court should the CIRB order an end to the labour dispute as per his direction, Mr. Laporte said.
The Teamsters, which has opposed company demands to let an arbitrator settle the contracts, called the Minister’s directive to the CIRB “shameful” and an attempt to appease the companies.
CPKC said it is ready to resume operations once its receives the board’s order to do so. “CPKC is disappointed by this delay, which will affect our ability to resume serving the Canadian economy,” the railway said in a statement.
The companies and union remain far apart in negotiations over many issues, including working conditions. The Teamsters said CPKC’s contract offers risked safety and did not address issues that included fatigue management and quality of life. The union said the railways were trying to overcome a labour shortage by making employees work longer days and farther from home.
Those accusations were flatly denied by the companies, which say their offers ensured safety, offered higher wages and included scheduling changes that would let employees spend more time with their families.
The Minister’s directions to the labour board do not make the outcome certain, said Bruce Curran, an associate law professor at the University of Manitoba.
Since 2007, the courts have significantly strengthened labour and collective-bargaining rights, which Prof. Curran said helps to bolster the union’s counterarguments at the hearing.
He said the CIRB will have to consider carefully the now constitutionally entrenched right to strike when deciding whether to accept the government’s requests. And even if the board sides with the government, that might not resolve the dispute as the Teamsters could challenge the CIRB decision in court, Prof. Curran said.
“There are plenty of, unfortunately, twists and turns left to come on this, and it’s not exactly possible to tell exactly how everything’s going to play out,” he said.
Jean-Daniel Tardif, director of dispute resolution services at the CIRB, said the Minister’s referrals are being handled “with utmost urgency,” but he declined to say how long it might take to respond. “Case management conferences were held last evening, and a hearing is proceeding” on Friday, Mr. Tardif said in an e-mail.
Business groups welcomed the Labour Minister’s attempt to end the stoppages, and urged the parties to abide by his directives to return to work.
“Grain farmers will continue to lose $50-million a day with the continuance of a total shutdown of our national railways,” the Grain Growers of Canada said.
The shutdown has halted movements of grain, imported goods at the ports and chemicals. Some commuter railways near Vancouver, Toronto and Montreal that run on CPKC tracks remained suspended on Friday.
Even before the lockouts, the railways began winding down operations to ensure trains and goods would be parked safely. This meant most shipments within and destined for Canada were not being picked up. U.S. railways that interchange freight with CN and CPKC also saw a drop in cargo volumes.
Anthony Hatch, a rail analyst at AHB Consulting in New York, said the change across most of the U.S. was not noticeable. “But if you were in Minnesota, it’s going be an issue. And if you’re a farmer, potentially it’s an issue, and it could be a positive one,” because U.S. wheat prices rose slightly in response.
Still, he said, the global supply chain is accustomed to disruptions, whether it’s port strikes, the two biggest wheat growers at war (Russia and Ukraine) or Houthis attacking freighters in the Red Sea. “There’s always something,” he said, “and this is our version of something.”
In Calgary, Sean O’Brien, general president of the International Brotherhood of Teamsters, said the Washington-based union is offering whatever backing the Canadian members need as the dispute proceeds. He declined to give specifics about potential cross-border actions to disrupt the companies’ operations.
“It may have an impact on supply chain, it may have an impact on recessions in both respective countries. So they have got a lot of decisions they need to make,” he said.
