Freight trains across Canada have come to a grinding halt and some commuter traffic is also suspended as thousands of workers at the country’s two main railway companies have been locked out despite efforts from the federal government to urge a deal to end their labour dispute.
Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC) said early Thursday that they had moved forward with their lockout notices and shut down services after negotiations with the Teamsters Canada Railway Conference (TCRC) union failed to reach an agreement.
CPKC said in a statement it “has bargained in good faith, but despite our best efforts, it is clear that a negotiated outcome with the TCRC is not within reach.”
“The TCRC leadership continues to make unrealistic demands that would fundamentally impair the railway’s ability to serve our customers with a reliable and cost-competitive transportation service,” CPKC said.
CN said in a separate statement that the union did not respond to another offer in a final attempt to avoid a labour disruption.
“Without an agreement or binding arbitration, CN had no choice but to finalize a safe and orderly shutdown and proceed with a lockout,” the rail operator said.
TCRC had issued a news release on Sunday saying that unless the parties reach a last-minute agreement, workers will be off the job as of 12:01 a.m. eastern time Thursday.
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Not long after the union’s statement, CN Rail issued a notice that it intends to lock workers out at that same time unless an agreement or binding arbitration is achieved.
TCRC, which represents roughly 10,000 employees at CN and CPKC, said despite months of negotiations, all parties “remain far apart” and “the main obstacles to reaching an agreement remain the companies’ demands, not union proposals.”
This is the first time that a work stoppage has occurred simultaneously at CN and CPKC, which are responsible for the bulk of Canada’s freight train operations.
The impasse also affects tens of thousands of commuters in Toronto, Montreal and Vancouver, whose lines run on CPKC-owned tracks. Passenger trains cannot run on those rails without the locked-out traffic controllers to dispatch them.
The railway shutdown, which had business groups, the agriculture sector, exporters and retailers concerned, could incur massive losses and cause supply chain disruptions in different industries that rely on the rail networks.
Speaking to Global News on Wednesday, Labour Minister Steve MacKinnon said “significant issues” remained in negotiations between the two rail companies and unions.
“The economic consequences would be far-reaching, and the impact on everyday Canadians would be significant,” he said.
The rail companies and union have traded accusations of refusing to engage on certain sticking points, and mediators have been brought in to try and break the impasse over scheduling issues, relocation and safety concerns from workers.
“Throughout this process, CN and CPKC have shown themselves willing to compromise rail safety and tear families apart to earn an extra buck,” said TCRC president Paul Boucher in a statement.
“The railroads don’t care about farmers, small businesses, supply chains, or their own employees. Their sole focus is boosting their bottom line, even if it means jeopardizing the entire economy.”
— with files from Global News’ Sean Boynton and Mackenzie Gray and The Canadian Press.
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