A Canadian Pacific Railway locomotive is shown at the main CP Rail trainyard in Toronto on Monday, March 21, 2022. Rail strike is possible as of Aug. 22 after the labor board rules services are non-essential.
Two of Canada’s largest railways have issued warnings of an impending lockout of workers, set to begin on August 22, if contract negotiations fail to reach a resolution. Canadian National Railway Co. (CN) and Canadian Pacific Kansas City Ltd. (CPKC) both announced on Friday that without a breakthrough in ongoing talks, they will lock out their workers, a move that could severely disrupt supply chains across the country.
These announcements came shortly after the Canada Industrial Relations Board determined that a work stoppage would not pose a significant risk to public health or safety, thereby clearing the way for a strike or lockout. Should either occur, employees at CN or CPKC would not be obligated to continue transporting essential goods, such as chlorine for water treatment or propane for care facilities. The labor tribunal also ordered a 13-day cooling-off period as part of its decision.
Around 9,300 conductors, engineers, and yard workers from CN and CPKC have been in protracted negotiations over new collective agreements, including a separate deal for CPKC rail traffic controllers. CPKC stated that if no agreement is reached by August 22, it will lock out 3,300 members of the Teamsters Canada Rail Conference (TCRC).
"If no resolution is reached during bargaining and the TCRC continues to refuse binding interest arbitration, CPKC will have no choice but to take this action," the company said, citing concerns over supply chain stability.
CN, on the other hand, has called on the federal government to enforce binding arbitration, expressing frustration with the negotiation process. The company plans to gradually shut down its operations, culminating in a lockout of 6,000 workers on August 22. CN spokesperson Jonathan Abecassis stated, "We have made four offers this year that address wages, labor availability, and safety, but the union has not provided a single counteroffer."
The union, however, criticized the lockout threats as an "unexpected and needlessly antagonizing" move. Union spokesperson Christopher Monette accused the companies of being inflexible and unwilling to compromise on key issues such as crew scheduling, fatigue management, and safety.
The possibility of a work stoppage at CN or CPKC—or both—has alarmed shippers and producers, who warn that it could halt freight traffic, clog ports, and disrupt industries. Federal Labour Minister Steven MacKinnon urged both parties to reach a deal independently rather than rely on government intervention, emphasizing that a negotiated agreement is the best solution.
Concerns are growing across various industries, with some businesses already rerouting cargo due to the uncertainty. Industry leaders have also warned that a prolonged stoppage could lead to higher prices, supply chain disruptions, and potential layoffs.
