Saturday, August 10, 2024 Canadian Pacific Kansas City (CPKC) has announced plans to issue a lockout notice to the Teamsters Canada Rail Conference (TCRC) – Train and Engine (T&E) division and TCRC – Rail Traffic Controller (RCTC) division. If a negotiated settlement or agreement on binding interest arbitration is not reached by August 22, CPKC intends to lock out employees starting at 00:01 ET on that date. The company emphasized its commitment to ongoing good faith negotiations.
This decision follows a ruling by the Canada Industrial Relations Board (CIRB) last Friday, which concluded that no services need to be maintained during a railway strike or lockout to safeguard Canadian public health and safety. The CIRB also extended the cooling-off period by 13 days, now set to end on August 22. If no agreement is reached by then, a legal strike or lockout involving the TCRC – T&E or TCRC – RCTC divisions may ensue.
CPKC stressed the urgency of resolving the labor dispute to avoid prolonged uncertainty and ensure the continued service of the North American economy. The company urged the TCRC to accept its offer for binding interest arbitration to restore stability. Should the TCRC decline binding arbitration and negotiations fail to yield a resolution during the extended cooling-off period, CPKC will proceed with the lockout to protect Canada’s supply chains from significant disruptions, especially during the crucial fall peak shipping period.
The company warned that further delays in resolving the dispute would only exacerbate the situation, harming Canada’s reputation as a reliable international trading partner. In preparation for a potential work stoppage, CPKC has issued a public notice to provide customers and supply chain partners with ample time to plan for a safe and orderly shutdown of railway operations. As part of these preparations, the company will impose an embargo on all toxic by inhalation (TIH) dangerous goods traffic to ensure its safe removal from the rail network.
Additional embargoes will be issued as necessary during the cooling-off period. CPKC remains dedicated to preventing a work stoppage and is taking steps to address concerns raised by the leadership of the Teamsters Canada Rail Conference (TCRC). In light of the opposition from TCRC, CPKC has informed the union representing conductors and locomotive engineers that it will conditionally withdraw its offer for a new modernized, time-based collective agreement.
This proposal aimed to address the union’s concerns about work and time-off scheduling while offering substantial wage increases and enhanced customer service flexibility. Instead, CPKC will shift its focus to a status quo-style contract renewal covering a three-year term. This proposal includes competitive wage increases aligned with recent agreements reached with other railway unions and preserves the current work rules.
The status quo-style offer fully adheres to new regulatory requirements for rest and ensures that safety remains uncompromised..
