News / Rail strike looming in Canada: it will come 'at the worst possible time'

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Canadian rail workers union, the Teamsters Canada Rail Conference (TCRC), has called for strike action “at the worst possible time”, following after five months of discussion with the rail operator employers. 

If a deal cannot be reached between the TCRC and Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC) by 22 May, operators and dispatchers across the country will strike. 

CPKC president and CEO Keith Creel said in an earnings call last week: “It’s certainly not going to come at a good time for Canada. If we’re going to have a strike, the uncertainty of that is damaging.  

“If it is prolonged, it will occur later in the year when we have a harvest coming in, when the demands for our services and the needs of the country have never been greater, that is the absolute worst time for it to occur… That’s how serious this is.” 

Mr Creel explained that CPKC had “two options on the table” for TCRC members. The first a “status quo deal” that involves a “pay-related change”, rather than a “work rule change”; and the second a “progressive hourly deal”, which CPKC believes would best address “what employees want and need”. 

He said: “They want a better quality of life. They want higher wages, which certainly is understandable.  

“The customer wins, the employee wins, employee retention wins. It truly is a win-win scenario, but it takes change, it takes leaders that are willing to see the wisdom in it, the benefit in it. And at this point, that has not happened.” 

Mr Creel added: “I’m going to be optimistic, but realistic. So where does that lead us? That leads us to the third weekend of May – the drop-dead time is going to be 19 May – and at that point, if we don’t have an agreement… you have to make sure you plan for the worst.” 

CN revealed yesterday the union had “made it clear” it would not agree the package offered, “based on an hourly rate and scheduling that would have provided significant wage increases and offered scheduled consecutive days off, provisions for no layoffs, and reduced hours away from home”. 

The union told CN it was unavailable to meet until 13 May, which is likely when the next negotiation will take place. 

Indeed, CN also said it “regrettably maintains a cautious outlook on finalising a deal before a labour disruption that would affect the Canadian supply chain, the North American economy and (its) employees”. 

Mr Creel concluded: “I’m hopeful we can avoid it, but this railroad will be prepared if we can’t, because we will not do a bad deal. We’ve got to balance the needs of our shareholders, our customers and our fellow employees, not just the TCRC.” 

To which an investor commented: “It almost feels as if guidance assumes we are going to have a strike.”