Freight trains across Canada have ground to a halt and some commuter vehicles have also been suspended as thousands of workers at the country’s two main rail companies have been laid off despite efforts by the federal government to push for a deal to end their labour dispute.
Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC) said early Thursday they had moved forward with their lockout and service closure notices after negotiations with the Teamsters Canada Railway Conference (TCRC) union failed to reach an agreement.
CPKC said in a statement “We have negotiated in good faith, but despite our best efforts, it is clear that a negotiated outcome with the TCRC is not within our reach.”
“TCRC leaders continue to make unrealistic demands that would fundamentally harm the railroad’s ability to serve our customers with reliable, cost-competitive transportation service,” CPKC said.
CN said in a separate statement that the union did not respond to another offer in a last-ditch attempt to avoid labor disruption.
“Without an agreement or binding arbitration, CN had no choice but to effect a safe and orderly closure and proceed with the lockout,” the rail operator said.
TCRC had issued a press release on Sunday saying that unless the parties reach a last-minute agreement, workers will be off the job beginning at 12:01 a.m. Eastern Time on Thursday.
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Not long after the union’s statement, CN Rail issued a notice that it intends to lock out workers at the same time unless a settlement or binding arbitration is reached.
TCRC, which represents about 10,000 CN and CPKC employees, said that despite months of negotiations, all sides “remain far apart” and “the main obstacles to reaching an agreement remain the companies’ demands, not the unions’ proposals.”
This is the first time that a simultaneous work stoppage has occurred at CN and CPKC, which are responsible for the majority of Canada’s freight rail operations.
The impasse also affects tens of thousands of passengers in Toronto, Montreal and Vancouver, whose lines run on tracks owned by CPKC. Passenger trains cannot run on those tracks without traffic controllers who are blocked from dispatching them.
The closure of the railways, which affected business groups, the agricultural sector, exporters and retailers, could lead to massive losses and cause supply chain disruptions in different industries that rely on rail networks.
Speaking to Global News on Wednesday, Labor Minister Steve MacKinnon said there were still “significant issues” left in negotiations between the two rail companies and unions.
“The economic consequences would be far-reaching and the impact on ordinary Canadians would be significant,” he said.
Rail companies and the union have traded accusations of refusing to compromise on certain sticking points, and mediators have been used to try to break the impasse over scheduling issues, relocation and worker safety concerns.
“Throughout this process, CN and CPKC have demonstrated a willingness to compromise rail safety and separate families to make extra money,” TCRC Chairman Paul Boucher said in a statement.
“Railroads don’t care about farmers, small businesses, supply chains or their own employees. Their only goal is to improve their bottom line, even if that means putting the entire economy at risk.”
— with files from Uday Rana, Sean Boynton and Mackenzie Gray of Global News and The Canadian Press.
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