- Beginning at 12:01 am Thursday, Canadian National Railway (TSX:CNR) and Canadian Pacific Kansas City (TSX:CP), the country’s two largest railways, locked out 9,300 workers after failed contract negotiations with the Teamsters Canada Rail Conference
- Following up on a previous Stockhouse report, the move will impede the flow of about C$1 billion in goods per day, as well as disrupt more than 30,000 passengers who rely on rails owned by the companies
- Negotiations continued until late Wednesday in Calgary and Montreal with last-minute offers from both companies being rejected
- Political leaders across parties have spoken out in favour of a voluntarily bargained solution
Beginning at 12:01 am Thursday, Canadian National Railway (TSX:CNR) and Canadian Pacific Kansas City (TSX:CP), the country’s two largest railways, locked out 9,300 workers after failed contract negotiations with the Teamsters Canada Rail Conference.
Following up on a previous Stockhouse report, the move will impede the flow of about C$1 billion in goods per day, as well as disrupt more than 30,000 passengers who rely on rails owned by the companies and the controllers that manage them to make their daily commutes.
Negotiations continued until late Wednesday in Calgary and Montreal, but ended before the midnight deadline with no deal being reached, and both sides at odds on issues concerning pay, rest provisions and more predictable schedules.
(Source: X)
Canadian National Railway made a last-minute offer to its 6,000 workers that improved wages, aligned hours of service with federally mandated rest provisions, and proposed a pilot project for hourly rates and scheduled shifts on a portion of its network, but was rejected.
The company believes “the Teamsters have not shown any urgency or desire to reach a deal that is good for employees, the company and the economy,” according to Thursday’s news release.
(Source: X)
Canadian Pacific Kansas City, for its part, locked out its 3,300 workers citing the union’s “unrealistic demands that would fundamentally impair the railway’s ability to serve our customers with a reliable and cost-competitive transportation service” in a statement released Thursday.
Canadian Pacific Kansas City’s final offers before the stoppage included increased wages above inflation, an engineers’ guaranteed extra board, increased shift differentials, and a provision to reset rest only at the home terminal.
Both railway operators have attempted and failed to get the Canadian government to impose binding arbitration, which would see the parties agree to a resolution from an independent third-party, with political leaders across parties, including Prime Minister Justin Trudeau, NDP leader Jagmeet Singh and Ontario Premier Doug Ford having spoken out in favour of a voluntarily bargained solution.
“My message is very straightforward. It is in the best interest of both sides to continue doing the hard work at the table to find a negotiated resolution,” Trudeau told reporters on Wednesday. “Millions of Canadians, of workers, of farmers, of businesses right across the country are counting on both sides to do the work and get to a resolution.”
About Canadian National Railway
CN Rail transports more than 300 million tons of natural resources, manufactured products and finished goods throughout North America every year across its nearly 20,000-mile rail network and related transportation services.
Canadian National Railway (TSX:CNR) last traded at C$155.28 per share. The stock has added 2.17 per cent year-over-year and 30 per cent since 2019.
About Canadian Pacific Kansas City
Canadian Pacific Kansas City is the first and only single-line transnational railway linking Canada, the United States and Mexico.
Canadian Pacific Kansas City (TSX:CP) last traded at C$108.52 per share. The stock has added 2.35 per cent year-over-year and 74.61 per cent since 2019.
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(Top photo of a rail worker picket line Thursday in Sarnia, Ontario: Teamsters Canada Rail Conference)