Potential Rail Strike Looms as Canadian Pacific Kansas City Labor Negotiations Stall

02 Aug Potential Rail Strike Looms as Canadian Pacific Kansas City Labor Negotiations Stall

Canadian Pacific Kansas City (CPKC) is preparing for a potential rail strike in late August, as labor negotiations with the Teamsters Canada Rail Conference (TCRC) remain unresolved. During the company’s second quarter earnings call, CEO Keith Creel indicated that talks have stalled, with the parties significantly apart on a new contract.

The Canadian Industrial Relations Board will decide by August 9th which commodities are essential to health and safety and must continue to move during a strike. TCRC members, who represent engineers and conductors at CPKC and Canadian National (CN), have already voted to authorize a strike, which could begin with 72 hours notice after the CIRB decision.

A strike would halt CPKC and CN operations in Canada and disrupt commuter rail services in Vancouver, Toronto, and Montreal, which operate on CPKC-controlled tracks. Creel emphasized the potential damage to Canada’s reputation as a reliable trading partner, particularly following recent labor disputes at ports in British Columbia.

Creel expressed cautious optimism about reaching a fair agreement, while also preparing for potential disruptions. A possible strike by dockworkers on the U.S. East and Gulf coasts could shift cargo to CPKC-served ports like Lazaro Cardenas in Mexico and Saint John in New Brunswick. CPKC has already conducted successful test runs from Lazaro Cardenas to its terminal in Texas, anticipating possible port labor issues in the U.S.