Canadian National Railway has ended lockout, recovery plan underway

Canada’s two biggest railways are preparing to get trains running again after Ottawa said it would step in to end a bitter labour dispute.

Canadian National Railway Co. says it has ended its lockout of workers that began earlier today and is to immediately begin a recovery plan.

The company says while it’s awaiting a formal order from the Canada Industrial Relations Board, it made this decision in order to speed up the recovery of the economy.

It says it’s satisfied the labour conflict has ended but is disappointed a negotiated deal could not be achieved.

Canadian Pacific Kansas City, meanwhile, says it’s preparing to restart operations.

It says it will provide further details about timing once it receives an order from the board to impose final binding arbitration.

The announcements come after Labour Minister Steven MacKinnon stepped in to get trains moving again after an unprecedented lockout by the country’s two largest rail companies.

He will use his powers under Section 107 of the Labour Code to ask the Canada Industrial Relations Board to impose final, binding arbitration.

He’s also asked the board to order the railways to resume operations under the terms of the current collective agreements until new deals are in place.

MacKinnon says the collective bargaining process is ultimately up to the companies and the Teamsters Canada Rail Conference union, but the lockout is affecting all Canadians.

After months of increasingly bitter negotiations, shipments at Canadian National Railway Co. and Canadian Pacific Kansas City Ltd. ground to a halt last night as talks broke off.

Both railways have called for binding arbitration, but the union rejected those calls.

Rail workers from Halifax to Vancouver set up picket lines on Thursday morning, while sign-toting employees demonstrated outside CN’s headquarters in downtown Montreal and CPKC’s head office in Calgary.

Each side has accused the other of failing to negotiate seriously.

“We believe that this thing has to be settled at the bargaining table,” Teamsters Canada president François Laporte told reporters in Montreal.

“We don’t believe in letting a third party decide what’s going to be the working conditions of these people for the next two, three, four, five years.” 

The union has said both companies are pushing to weaken protections around rest periods and scheduling. CN also aims to implement a “relocation scheme” that would see some employees move to far-flung locations for several months at a time to fill labour gaps, the Teamsters say.

“They want to get rid of language that would put our health and safety and lifestyle in jeopardy,” Laporte said.

CN said it has negotiated in good faith over the past nine months.

“The company consistently proposed serious offers, with better pay, improved rest and more predictable schedules. The Teamsters have not shown any urgency or desire to reach a deal that is good for employees, the company and the economy,” CN said.

The leader of the federal NDP party called the federal government’s move ‘cowardly’ and proof that Trudeau caves in to corporate greed.

“Justin Trudeau has just sent a message to CN, CPKC and all big corporations – being a bad boss pays off,” Jagmeet Singh said in a statement, after saying earlier in the day he would not support back-to-work legislation or any interference in the bargaining process.

“There will be no end to lockouts now. Every employer knows they can get exactly what they want from Justin Trudeau by refusing to negotiate with their workers in good faith. And that puts the safety of workers and communities at risk.” 

Commuter trains impacted by strike

In addition to the freight traffic, the impasse has also affected upwards of 32,000 commuters in Toronto, Montreal and Vancouver whose lines run on CPKC-owned tracks. Passenger trains cannot roll along those rails without the 80 locked-out traffic controllers on hand to dispatch them.

“The rail shutdown at CN and CPKC is already costing workers, transit users and businesses across the country, and we cannot afford to let things get worse,” Ontario Premier Doug Ford posted on X on Thursday morning.

GO Transit warned that its network “may be busier than usual.”

Metrolinx said rail service was suspended at Hamilton GO Centre and on the Milton line, which cuts through Mississauga to Toronto’s downtown Union Station.

“This is completely unacceptable, and we should have been informed earlier, said Om Sangekar, speaking outside the Cooksville station.

“I’ll definitely be late for work.”

GO Transit customer care workers stopped people on their way into the parking lot to tell them about the shutdown and alternative travel options. Shuttles were running every 30 minutes to take those at the Cooksville station to Port Credit’s GO hub, where they could catch a ride on the Lakeshore line.

Shraddha Mhatre, a commuter who arrived at the Cooksville station unaware of the stoppage, decided to work from home.

“I have some meetings scheduled in the mornings so I can’t take a chance to have any further delays,” she said.

In Vancouver, TransLink said the West Coast Express service was suspended, while Exo Transit says its Candiac, Saint-Jérôme and Vaudreuil/Hudson lines, which serve around 21,000 daily riders in the Montreal area, are shut down.

Work stoppage ripples beyond Canada’s borders

Pressure from industry groups and government to resolve the bargaining impasse has been mounting for weeks, with calls to hash out a resolution ratcheting up further after the work stoppage kicked off.

Business groups have demanded that Ottawa step in by imposing binding arbitration and barring strikes and lockouts as that process plays out.

“The minister of labour must use the tools at his disposal to immediately resolve this conflict through binding arbitration,” said Canadian Chamber of Commerce chief executive Perrin Beatty in a statement Thursday. Ottawa could have prevented the unprecedented shutdown, he said, but chose not to.

CN and CPKC haul a combined $1 billion in goods each day, according to the Railway Association of Canada. Most of the 180,000-plus railcars they haul each week — moving everything from aircraft parts to zinc, wheat, clothes, computers and fertilizer — were already sidelined by Wednesday under a phased wind-down that began last week.

Moody’s warned that the work stoppage could cost the Canadian economy $341 million per day, with agriculture, forestry and manufacturing among the hardest-hit sectors.

The Teamsters represent 6,000 CN workers and 3,300 CPKC workers. The two companies typically hammer out new deals with employees a year apart, but in 2022 CN asked for a yearlong extension to the current collective agreement, throwing the bargaining periods into lockstep.

Engineers — drivers — earn $150,000 a year on average and conductors, whose role involves placing cars and loading cargo, earn $121,000 before benefits, according to CN. It says they work roughly 160 days a year — shifts that can involve long hours in freezing conditions far from home.

CPKC has said employees earn comparable, but slightly lower, amounts.

The railroad operator said Thursday it has sought a three-year “status quo” contract — no fundamental changes — with higher wages that outpace inflation.

The effects of the work stoppage have rippled out beyond Canada’s borders. 

U.S. railways have had to turn away Canada-bound shipments. American shippers rely on Canada’s two main railways, whose tracks run to the Gulf of Mexico and, in CPKC’s case, to terminals in southern Mexico.

Meanwhile, Canadian ports fear containers will pile up on the docks as cargo goes unmoved, causing congestion and prompting some carriers to reroute to U.S. terminals.