On May 22, a strike by Canadian National (CN) and Canadian Pacific Kansas City (CPKC) workers could erupt, affecting essential supply chains across North America and significantly restricting trade between Canada, the United States, and Mexico.

On May 1, employees of these railways voted with over 97% in favor of a potential strike if agreements on their labor demands are not reached, reported the Teamsters Canada Rail Conference (TCRC).

Paul Boucher, president of the Conference, stated that this strike would greatly impact the supply chains of both railways.

“The Conference has been from the beginning, we are here to negotiate, the three committees continue without any commitment from the companies at the negotiation tables,” he said.

He considered the railways to be “playing a dangerous game with safety,” as they are trying to change collective safety agreements.

“They claim they want to have a modernized agreement, but in reality, they won’t move forward for decades. Our members have articles within their collective agreements that protect their rights to mitigate fatigue. Different work periods can lead to significant safety risks,” he said.

CN stated that the TCRC has made it clear that it will not accept moving towards a more modern agreement based on an hourly rate and a schedule that would have provided significant wage increases and offered scheduled consecutive days off, provisions for no layoffs, and reduced hours away from home.

“In an effort to reach a negotiated agreement, CN suggested a simplified and alternative path to achieve an agreement before the earliest possible strike date of May 22. CN’s suggestion was designed to protect the Canadian supply chain, the North American economy, and, equally important, ensure that employees receive fair treatment,” it stated.

It noted that despite five months of constant discussions, the Conference has made very few concessions towards a negotiated agreement and has not been clear about what it is seeking for employees, aside from continuing to focus on a list of approximately 200 local and regional demands unrelated to a modern consolidated agreement that benefits both employees and customers.

Meanwhile, CPKC mentioned that a labor strike would disrupt essential supply chains across North America and significantly restrict trade between Canada, the United States, and Mexico.

“CPKC does not want a labor strike. We remain focused and dedicated to reaching balanced and responsible agreements through the collective bargaining process. CPKC is committed to negotiating in good faith and responding to our employees’ desire for higher wages and a better work-life balance, while respecting the best interests of all our railroaders, their families, our customers, and the North American economy,” it stated.

It recalled that it has made two distinct offers to TCRC leaders. Both options, it said, provide significant benefits to employees and fully comply with new Canadian regulatory requirements for rest and “do not compromise safety in any way.”

It clarified that the first offer promises significant wage increases, which are possible through a simplified time-based payment method and a better work-life balance through schedule predictability and set days off. The second offer proposes competitive wage increases and maintains the status quo for the rest of the collective agreement, with one exception: addressing a single salary item at the away-from-home terminal to account for Canada’s new regulated rest regime.

According to Canada’s Labor Code, April 30 was the last day of the 60-day conciliation period. The parties now begin a mandatory 21-day mediation period with federal mediators. If the parties do not reach new collective agreements during the mentioned period, a legal labor strike could occur starting Wednesday, May 22. Canada’s Labor Code requires a minimum 72-hour notice before a strike or lockout.

TCRC and CPKC leaders are scheduled to meet again during the week of May 13.

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