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Uncertainty hangs over rail industry as shippers fret over potential strike

Labour tribunal to release decision Friday on if strike would jeopardize country香蕉视频直播檚 health and safety
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Shippers and producers are holding their breath ahead of a possible strike by thousands of rail workers this month that would halt freight traffic, clog ports and disrupt industries. A shipping container is loaded onto a container ship in the Port of Montreal, Tuesday, Sept.19, 2023.THE CANADIAN PRESS/Christinne Muschi

Shippers and producers held their breath ahead of a possible strike by thousands of railworkers this month that would halt freight traffic, clog ports and disrupt industries.

香蕉视频直播淭he railways are two ribbons that go east to west, and there香蕉视频直播檚 not much alternative if you cut those two ribbons,香蕉视频直播 said John Corey, president of the Freight Management Association of Canada, whose members include port authorities, manufacturers and other large shippers such as retailers Canadian Tire and Home Depot.

香蕉视频直播淭he ports become useless. Nothing moves anywhere.香蕉视频直播

Canadian railways haul more than $350 billion worth of goods and more than half of the country香蕉视频直播檚 total exports each year, according to the Railway Association of Canada.

Anxiety over a strike by some 9,300 employees at Canadian National Railway Co. and Canadian Pacific Kansas City Ltd. has already cost the companies business after some customers started to reroute cargo following approval of a strike mandate by union members on May 1.

Then-labour minister Seamus O香蕉视频直播橰egan, in an apparent move to delay the disruption, asked the country香蕉视频直播檚 labour board later that month to review whether a work stoppage would jeopardize Canadians香蕉视频直播 health and safety.

The Canada Industrial Relations Board is examining whether there are critical shipments 香蕉视频直播 chlorine for water and gasoline for cities, for example 香蕉视频直播 that must continue in the event of job action, putting any potential work stoppage on pause until a ruling is made.

Either way, observers says the possibility of a strike will likely remain on the table after the decision 香蕉视频直播 expected this Friday 香蕉视频直播 as players in industries ranging from agriculture to big-box retail fret over the fallout.

香蕉视频直播淏y kicking it down the road, all he did was really increase the uncertainty,香蕉视频直播 said Corey, referring to the former labour minister香蕉视频直播檚 move. 香蕉视频直播淣ow nobody knows what香蕉视频直播檚 going to happen, and uncertainty is bad for business.香蕉视频直播

O香蕉视频直播橰egan香蕉视频直播檚 replacement as federal labour minister, Steven MacKinnon, met Monday morning with leaders from the two main railways and the Teamsters Canada Rail Conference union to discuss the consequences for the economy and supply chain.

In a phone interview Friday, MacKinnon said the parties have failed to treat the issue with 香蕉视频直播渟ufficient urgency,香蕉视频直播 noting that talks have all but broken down over the past few weeks. The minister, who stepped into the role barely two weeks ago when O香蕉视频直播橰egan resigned from cabinet, suggested that the two sides need to hash out a deal themselves rather than rely on government intervention, such as back-to-work legislation.

香蕉视频直播淭he approach that we have found that works is where parties reach agreement at the bargaining table. Those provide the most enduring benefits to employers, to employees and the most satisfactory outcomes. And that is our plan in this case,香蕉视频直播 MacKinnon said.

All parties say they want to continue negotiating, but each blames the other side for the communication breakdown. CN and CPKC are bargaining separately with the Teamsters union toward distinct collective agreements, though two strikes could happen simultaneously.

Teamsters spokesman Christopher Monette said members are growing increasingly 香蕉视频直播渇rustrated and impatient香蕉视频直播 with the two railways 香蕉视频直播 and with the suspension of workers香蕉视频直播 right to strike while the labour board writes up a decision.

香蕉视频直播淎bsent the threat of a work stoppage, neither company appeared willing to compromise or show any flexibility in their demands,香蕉视频直播 he said in an email.

The stumbling blocks are crew scheduling, fatigue management and safety, he said. The union has rejected binding arbitration with both companies.

The railways framed the impasse differently.

香蕉视频直播淲e香蕉视频直播檝e proposed three different options to the union, which has refused to bargain and has just presented us with more demands,香蕉视频直播 said CN spokesman Jonathan Abecassis in a phone interview.

香蕉视频直播淲e want a resolution to this conflict. That香蕉视频直播檚 what we香蕉视频直播檙e hopeful that all of this will lead to.香蕉视频直播

CN and the union were in agreement on at least one point, however. The government香蕉视频直播檚 move to hand the issue to the labour board has 香蕉视频直播渏ust perpetuated the uncertainty,香蕉视频直播 said Abecassis.

CPKC said shipping demand hits peak levels in the fall, when millions of tonnes of grain and consumer products roll to market. CEO Keith Creel said last week he expects a strike later this month, with the financial hit baked into the company香蕉视频直播檚 earnings forecast for the year.

香蕉视频直播淲e香蕉视频直播檙e far apart,香蕉视频直播 Creel told analysts on a conference call, referring to the railway and the union representing 3,300 CPKC workers.

Nonetheless, the company committed Monday to return to the bargaining table this week. Its proposals comply with new regulatory requirements for rest and 香蕉视频直播渄o not in any way compromise safety,香蕉视频直播 said spokesman Patrick Waldron in a release.

A work stoppage cannot occur until the industrial relations board hands down its ruling, which may spell out a potential cooling-off period. The Canada Labour Code also requires 72 hours香蕉视频直播 notice ahead of a strike.

Canada香蕉视频直播檚 supply chain has faced several labour disruptions over the past four years, on top of the backlogs and bottlenecks of the COVID-19 pandemic. That inconsistency has begun to wear on confidence in Canadian supply chains.

香蕉视频直播淭here are costs that you can香蕉视频直播檛 produce an invoice for, like reputational damage,香蕉视频直播 said Wade Sobkowich, who heads the Western Grain Elevator Association.

香蕉视频直播淭he grain industry is viewed as a banana republic when it comes to getting product to our customers,香蕉视频直播 he said, referring to instability around delivery.

Last summer, a strike by 7,400 B.C. dockworkers dragged on for 13 days, shutting down the country香蕉视频直播檚 biggest port and costing the economy billions of dollars. In October, an eight-day strike by employees on the locks of the St. Lawrence Seaway halted shipments of grain, iron ore and gasoline along the trade corridor.

And in Montreal, the threat of a strike looms four years after longshore workers walked off the job for 12 days and left 11,500 containers languishing on the waterfront.

Job action at rail companies has been resolved in various ways. In March 2022, a strike by conductors, engineers and yard workers at Canadian Pacific lasted several days before both parties agreed to binding arbitration toward a new contract.

In November 2019, a rail strike gripped the country for eight days until CN and 3,000 railroaders reached a tentative deal. In 2012, the Conservative government tabled back-to-work legislation five days after 4,800 Canadian Pacific workers walked off the job, citing a risk to the country香蕉视频直播檚 economy and reputation.

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Christopher Reynolds, The Canadian Press

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