Brian Zinchuk is editor and owner of Pipeline Online
Rail union bargaining is apparently a metaphorical train wreck. Photo by Brian Zinchuk
The evening of Sunday, Aug. 18, CN announced it is locking out its Teamsters Canada Rail Conference (TCRC) workers as of 00:01 Eastern Time on August 22 “unless an agreement or binding arbitration is achieved before that time.”
A total shutdown, of course, will impact crude-by-rail, but also frac sand, pipe, steel, asphalt, propane and more, all crucial to the oilpatch.
CN said in a press release:
Despite negotiations over the weekend, no meaningful progress has occurred, and the parties remain very far apart.
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.
CN must continue with the progressive and planned shutdown of its network, as we remain under the threat of an unpredictable strike notice. This planned shut down helps to ensure the safety of the communities in which we operate and the safety of our customers’ goods, and to optimize the network’s recovery following a labour disruption. Additional embargoes will be issued on Monday August 19th.
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The Teamsters said in a notice to its members on its website:
Brothers and Sisters,
We are writing to inform you that your bargaining committee was served 72 hours notice that CN will be locking out all running trades TCRC Members. This means that at 0001 on Thursday morning, if we cannot reach a tentative agreement, the Company will utilize their rights under the Canada Labour Code to remove our ability to come to work and earn a living.
Specific questions can be directed to your local division executives, but you can expect the same requirements as if we were on strike, with minor changes to signage amongst other things. Furthermore, as in other tenuous rounds of bargaining we have secured Emergency benefits. Information regarding those benefits will be released in very short order.
As this situation at the bargaining table develops, we will keep you all as informed as possible in the coming days.
In Solidarity,
Mark Kernaghan
General Chair
TCRC Central LEJean-Michel Hallé
General Chair
TCRC Lines East LEKC James
General Chair
TCRC West LEJim Lennie
General Chair
TCRC Central CTYRay Donegan
General Chair
TCRC West CTYAlain Gatien
General Chair
TCRC Lines East CTY
Regarding embargoes, CN said:
Railroads issue embargoes when, in the judgement of the railroad, an actual or threatened physical or operational impairment, of a temporary nature, warrant restrictions against such movements. It is particularly critical in the event of labor disruption to prevent sensitive and dangerous goods to be stranded on the network. The embargoes are effective within 48 hours of being issued.
Any product coming to, leaving, or moving within Canada on rail will not be transported during a work stoppage. Only limited train movements within yards will be executed as there are not enough certified management train crews to ensure intercity train movements.
Should a settlement be reached, or arbitration be agreed to, CN will remove its embargoes and resume normal operations.
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CPKC is also preparing for labour action. In an Aug. 16 post on its website, CPKC said:
CPKC remains committed to doing its part to avoid a work stoppage that would be damaging to the interests of all stakeholders, the economy and Canada’s international reputation. However, we must take responsible and prudent steps to prepare for a potential rail service interruption next week.
As previously indicated, CPKC has served notice to lock out Teamsters Canada Rail Conference (TCRC) Train and Engine (T&E) and Rail Traffic Controller (RCTC) employees at 00:01 Aug 22, unless TCRC leadership and the company are able to come to negotiated agreements or agree to binding interest arbitration.
CPKC remains committed to bargaining in good faith. Bargaining is scheduled to continue on Sunday, Aug. 18.
For the T&E division, CPKC is focused on a status quo-style contract renewal covering three years with competitive wage increases that are consistent with recent settlements with other railway unions and maintains the status quo for all work rules. The status quo-style offer fully complies with new regulatory requirements for rest and does not in any way compromise safety. For the TCRC – RCTC division, CPKC has also proposed a renewed agreement with the rail traffic controllers which would deliver competitive wage increases.
While CPKC continues to move as much freight as possible prior to a potential work stoppage, we are taking steps for a safe and orderly shutdown of railway operations in Canada:
- On Monday, Aug. 12, embargo for all toxic by inhalation and poisonous by inhalation dangerous goods traffic originating in Canada or destined to a Canadian location took effect.
- As of Thursday, Aug. 15, CPKC is not accepting loaded intermodal shipments classified as dangerous goods. This applies at all intermodal facilities for both domestic and international shipments destined to, or originating from, terminals and ports located in Canada.
- Effective Saturday, Aug. 17, embargo expanded to other dangerous goods including all Rail Security Sensitive Materials (RSSM) as well as the Time Sensitive Commodities.
- Effective Monday, Aug. 19, embargo expanded for all other dangerous goods shipments.
- Effective Tuesday, Aug. 20, embargos for all shipments originating in Canada, all shipments originating in the United States destined to Canada, and all carload traffic destined to Canadian interchange.
CPKC is communicating directly with its customers as additional embargoes and intermodal terminal restrictions for temperature controlled containers and other intermodal containers are implemented, as necessary. We remain committed to keeping stakeholders updated.
We fully understand and appreciate what is at stake for Canadians and our economy. Commuters in Canada’s three largest cities (Vancouver, Toronto, and Montreal), our employees, our customers, Canada’s international reputation and supply chains across North America are impacted. We recognize that disruption is already occurring and will intensify until this dispute is resolved.
CPKC is acting to protect Canada’s supply chains, and all stakeholders, from the more widespread disruption that would be created should this dispute drag out further resulting in a potential work stoppage occurring during the fall peak shipping period. Delaying resolution to this labour dispute will only make things worse.
CPKC reiterates its standing offer to resolve this matter through binding arbitration should negotiations be unsuccessful. Binding arbitration is a responsible, reasonable, and fair path forward that would resolve this dispute without causing even more unnecessary harm and disruption to supply chains and our economy. All this uncertainty and disruption could be ended today if the TCRC would agree to binding arbitration.
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