Beginning tomorrow, CN Rail will be locking out employees who will then take to the picket line and strike until an agreement can be met between the two parties.
The union representing CN, as well as CPKC, Teamsters Canada Rail Conference (TCRC), is fighting for better pay and work conditions but CN and its peers will not budge on their position.
If an agreement cannot be met by Thursday August 22nd, a lockout and strike will begin.
On August 7th, CN and TCRC picked up where they had previously left off regarding negotiations, but their efforts to protect their respective interests resulted in a stalemate.
CN says that in January, they offered the TCRC a deal that they believe would adequately improve safety, wages, and work/life balance while protecting CN’s rights.
This offer was refused.
CN’s offer was then reportedly altered in April with a focus on better wages—$75 per hour for locomotive engineers and $65 per hour for conductors—along with job security and guaranteed earnings for employees.
CN says the TCRC refused the improved offer. Following the April offer, another altered deal was presented and refused by the union in May.
“Despite negotiations over the weekend, no meaningful progress has occurred, and the parties remain very far apart,” wrote a CN spokesperson in a media release.
“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.”
According to CN, they are enacting this lockout, so they are not caught unawares by a strike notice from the TCRC.
Union’s point-of-view
The TCRC says that they were not intending to serve CN with a strike notice.
The union has another negotiation stalemate with the CPKC, who also employ railway workers.
This is the first time in history the railway workers union has been in this situation. They say they planned on handling their negotiations with the two groups in succession, rather than simultaneously.
“Staggering the negotiations is a sensible solution that would minimize disruptions and allow all parties to address their concerns in a more structured and productive manner,” said Paul Boucher, President, TCRC.
“CN and CPKC’s rejection of this proposal is a clear indication of how little they care about the economy and the supply chain, as well as their unwillingness to negotiate. Quite frankly, they are using multinational corporations, the Canadian public, and North American supply chains as pawns to further their own greed.”
TCRC say that both companies have demanded major concessions, in some form or another. Especially in matters pertaining to crew scheduling, hours of work and fatigue management.
“Their demands undermine rail safety in Canada and remain a major stumbling block,” said the union.
Economic implications
According to the BC Council of Forest Industries (BCCFI), any kind of railway shutdown would have “far-reaching consequences” on their sector.
“Rail transportation is the backbone of our industry, enabling the movement of lumber, pulp, and paper products across North America and to global markets,” said Kurt Niquidet, Vice President and Chief Economist of BCCFI.
“The potential disruption of these services poses a severe risk to the forest sector and the economic stability of forestry-dependent communities across the province.”
He added that a simultaneous work stoppage at CN and CPKC could result in tens of millions of dollars in weekly losses.
Niquidet also stated he fears a shutdown would cause mill curtailments, causing even more unemployment in BC.
The lumber industry is just one of many that will feel the effects of the lockout and strike.
