Ongoing CN and CPKC Negotiations with TCRC

The ongoing labor dispute between the Teamsters Canada Rail Conference (TCRC) and two major Canadian railway companies—Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC)—has escalated significantly, leading to the potential for a nationwide freight rail disruption starting August 22, 2024.

Key Points:

1. Strike Notice and Lockout: The TCRC, which represents approximately 9,300 workers across CN and CPKC, has issued a 72-hour strike notice to CPKC, indicating that workers could walk off the job at 12:01 a.m. on August 22. In response, CN has issued a lockout notice for the same time, setting the stage for a simultaneous work stoppage if no agreement is reached.
2. Negotiation Stalemate: Both rail companies and the union have been involved in intense negotiations but have so far failed to make significant progress. CN has been particularly critical of the lack of movement in the talks and has already begun preparing for a shutdown of its network.
3. Government Involvement: Federal Labour Minister Steven MacKinnon has rejected CN's request for binding arbitration, urging both sides to continue negotiating in good faith. The government has so far refrained from intervening directly, despite concerns about the potential economic impact.
4. Economic Impact: Rail transport is critical to Canada’s economy, moving more than $1 billion worth of goods daily. The looming strike or lockout threatens significant disruptions to supply chains, particularly for key exports like grain, potash, and coal.
5. Embargoes: Both CN and CPKC have initiated embargoes on certain shipments, including dangerous goods. Effective Tuesday, August 20^th, 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. The embargoes are designed to manage the flow of goods and minimize disruption in anticipation of labor actions that could occur if no agreement is reached with the TCRC.

The situation remains fluid, with the potential for a resolution before the deadline. However, the likelihood of a major disruption is high if no agreement is reached​.

• CN Issues Lockout Notice to Teamsters | cn.ca
• Teamsters Canada Rail | Latest news & Updates (teamstersrail.ca)
• CN's updates
• CPKC's updates

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