Critical Railroad Strike Negotiations to Resume in Canada

07 Aug Critical Railroad Strike Negotiations to Resume in Canada

Negotiations to prevent a major railroad strike in Canada will resume on August 7, after months of stalled talks.

Leaders from Canadian National Railway Co., Canadian Pacific Kansas City, and the union representing their workers met with Labor Minister Steve MacKinnon on August 5 to avoid a potential work stoppage that could severely disrupt the supply chain.

“The meetings were frank and constructive, reflecting the gravity of the situation affecting Canada’s railways, workforce, and economy,” MacKinnon stated. These parties transport nearly C$400 billion (US$290 billion) in goods annually. Federal mediators will also participate in the discussions. Christopher Monette, a spokesperson for the Teamsters Canada Rail Conference, said the goal was to “increase the pace and frequency of discussions.”

“A work stoppage can be avoided if both companies return with fair and equitable proposals,” Monette wrote in an email. The union represents nearly 10,000 workers at the two companies.

Last week, Canadian Pacific Kansas City CEO Keith Creel indicated that a work stoppage was “most probable,” noting the significant gap between the two sides. Both rail companies have stated that they are no closer to a deal than when negotiations began in November last year. Canadian National Railway lowered its earnings forecast in July as customers began rerouting shipments to avoid potential disruptions. Shares of both railways have lagged behind the 6% rise of the S&P/TSX Composite Index this year.

No strike can occur until the government finishes assessing which shipments must continue during a work stoppage. The Canada Industrial Relations Board is expected to rule on the impact of a service interruption on health and safety by August 9, with a strike potentially starting three days later.