Shippers are preparing for supply-chain disruptions as Canadian rail workers, affiliated with the Teamsters Canada Rail Conference (TCRC), voted overwhelmingly to reauthorize strike action. Over the weekend, 10,000 workers at rail operators Canadian Northern (CN) and Canadian Pacific Kansas City (CPKC) voted, with 98.6% in favor of strike authorization, valid for 60 days. Previously authorized for May 22, the strike was delayed by a government request to determine if rail services were essential, which expired today. The union stated that due to the delay, they had to reauthorize strike action. If the Canada Industrial Relations Board (CIRB) decides the service is not essential, a strike could happen with just 72 hours’ notice. Both rail operators and the union claim rail services are not essential. One large shipper is planning for supply-chain disruptions from mid-July.
Negotiations continue, but the parties have not reached an agreement, with the union defending against company demands on crew scheduling, hours of work, and fatigue management. TCRC called for industrial action after five months of unsuccessful negotiations following the expiration of the previous agreement in December. The union criticizes CN and CPKC for trying to squeeze more availability out of train crews amid labor shortages and calls for improved working conditions. A strike could cause widespread disruptions to rail and ocean shipping, impacting ports including Vancouver, Prince Rupert, Montreal and Halifax, and exacerbating port congestion across Canada.
