The new agreement replaces the previous three-year deal, that was effective through December 31, 2026, CN Rail said, adding that the new agreement does not require ratification from the union’s members.

The rail company had faced a threat of work stoppage last year by rail unions until the Canadian government called for a binding arbitration to reach an agreement over a new contract.

Monday’s announcement follows a recent wave of agreements and ratifications across sectors, as unions push for better working conditions and pay.

“The arbitrator’s decision underscores the importance of a full industrial review of labor relations in Canada’s rail sector,” said Paul Boucher, TCRC president.

Last year, Unifor, which represents more than 3,000 rail workers, ratified a new four-year collective agreement with CN Rail, averting a potential strike action.

—Reporting by Anshuman Tripathy in Bengaluru

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On Saturday, the board accepted a request from the government to order more than 9,000 Teamsters members back to work at Canadian National Railway and Canadian Pacific Kansas City and to impose binding arbitration.

The union had already said it would appeal the rulings on the grounds that they were a win for the railways and could lead to the imposition of future contracts, eroding workers’ bargaining power.

“These decisions, if left unchallenged, set a dangerous precedent where a single politician can bust a union at will,” said Paul Boucher, president of the Teamsters rail union.

“The right to collectively bargain is a constitutional guarantee. Without it, unions lose leverage to negotiate better wages and safer working conditions for all Canadians,” he said in a statement. The union filed the challenges in the Federal Court of Appeal and asked that the proceedings be expedited. However Canada’s justice system is famously slow-moving and whoever loses the appeal is likely to take it to the Supreme Court, which means the case could take years to resolve.

There was no immediate reaction from either rail company or from federal Labour Minister Steven MacKinnon. He has already said he is confident his decision to refer the matter to the board would survive a court challenge given his broad power under Canada’s labour code.

Government officials say the challenge is separate from the board’s ruling and will not affect the return to work.

The two companies locked out the workers earlier this month after talks failed to produce a new labour deal.

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The task force’s final report, released Oct. 6, offered up 21 recommendations aimed at easing congestion in Canada’s ports, filling labour shortages and improving employee retention, and protecting corridors, border crossings and gateways from disruption.

Among the report’s short-term recommendations, for example, are a call to expand the 30-kilometre rail interswitch distance across Canada — a move meant to give shippers more options to move goods by rail on one company’s track before switching to another for the longer haul.

Among the longer-term recommendations, meanwhile, are a call to “protect corridors, border crossings and gateways from disruptions to ensure unfettered access for commercial transportation modes and continuity of supply chain movement.”

Among the bullet points tucked into that recommendation is a call for Labour Minister Seamus O’Regan to “urgently convene a council of experts to develop a new collaborative labour relations paradigm that would reduce the likelihood of strikes, threat of strikes, or lockouts that risk the operation or fluidity of the national transportation supply chain.”

On that point, the task force says “employers, unions and government must find creative solutions to avoid disrupting the supply chain” as “even the threat of strikes or lockouts negatively affects the operation of the national transportation supply chain and, in turn, Canada’s reputation as a destination of choice for doing business.”

Transport Minister Omar Alghabra said Oct. 6 the government will now move to develop a National Supply Chain Strategy, which “will be informed by the recommendations included in the task force’s final report.”

Among the organizations responding to the task force report’s release, the Teamsters Union said Oct. 6 it’s “pleased” with the recommendations to help fill vacancies in the transport sector.

“However, and just as importantly, the union is alarmed by the report’s language surrounding the right to strike,” the union said.

“Free collective bargaining is not an impediment to supply chain continuity, but this report suggests otherwise,” Teamsters Canada president Francois Laporte said in a release. “Ultimately, unions and everyday working-class Canadian families are not at the source of the world’s current disruptions. Attacking our rights won’t solve the crisis.”

The union said it believes the government’s responsibility is to “create the environment where workers and employers can negotiate freely, without interference, and in good faith.”

“It is wholly unacceptable for the task force to have considered ‘labour disputes’ as events requiring risk-mitigation strategies, on par with climate-related events,” Unifor national president Lana Payne said separately in a letter to Alghabra.

“Limiting worker power by curtailing the rights of workers to strike would contribute to the erosion of job quality, destabilizing the transportation supply chain further — the opposite of what the task force was set up to accomplish.”

Rather, Unifor said, “decades of industry deregulation combined with other anti-labour activities, such as contract flipping and contracting out, have contributed to the recruitment and retention issues plaguing critical parts of the sector.”

“That such a recommendation should surface through a government-appointed task force — in an advanced, pluralist, progressive democratic nation such as Canada — is incredulous,” Payne said in her letter to Alghabra.

“A stable, secure, and skilled workforce must stand atop the list of priorities for anyone looking to solidify supply chains. Sadly, job quality is noticeably absent from the list of action items in the task force’s final report.”

The last major disruptions caused by rail labour disputes in Canada were an eight-day strike by Teamsters-led conductors and yard workers at Canadian National Railway (CN) in 2019, and a three-day labour outage at Canadian Pacific Railway (CP) in March this year involving the company’s Teamsters-led engineers, conductors and train and yard workers.

CN’s signals and communications workers, led by the International Brotherhood of Electrical Workers (IBEW) System Council 11, also held a 17-day strike this summer but did not actively disrupt CN service during that time.

Among other recommendations to limit supply chain disruptions, the task force report also calls for Canada’s law enforcement agencies and judiciary to be provided with “tools and resources to pre-empt blockades and/or expeditiously remove individuals or objects intending to be used to disrupt nationally critical transportation supply chain infrastructure or operations.” — Glacier FarmMedia Network

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The agreement puts a formal lid on the latest round of contract disputes between Calgary-based CP and its 3,000-odd unionized employees represented by the Teamsters Canada Rail Conference (TCRC).

Those disputes peaked in a two-and-a-half-day work stoppage ending March 22, when the company and union agreed to go to binding arbitration to settle sticking points left unresolved in bargaining.

The new agreement, as laid out Monday by arbitrator William Kaplan, runs through to the end of 2023.

It provides wage increases of 3.5 per cent for each of 2022 and 2023, plus increases of three and 2.4 per cent to employees’ maximum disability and annual dental benefits respectively.

Kaplan’s binding decision was announced Monday after mediation on Friday and Saturday and a two-day hearing Sunday and Monday.

The arbitrator’s decision also calls for the TCRC to enter an agreement with CP on a pension improvement account (PIA) by the end of next month; the PIA would cover a six-year period ending Jan. 1, 2024 at the earliest.

The decision also updates the amount of time employees serving as union officials or reps can book for rest after taking leave to attend to union business.

CP CEO Keith Creel said Monday the company “welcomes the conclusion of arbitration and is pleased to have completed this agreement.”

TCRC brass, in a separate memo to its CP membership on Monday, said they would review Kaplan’s decisions and provide comments to local chairpersons and the membership “in the very near future.” — Glacier FarmMedia Network

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Federal Labour Minister Seamus O’Regan, attending labour talks between CP and the Teamsters Canada Rail Conference (TCRC) in Calgary, announced Tuesday morning that the parties “have agreed to resolve their remaining collective agreement provisions through binding arbitration,” thus ending a work stoppage that began Sunday.

According to the TCRC, the dispute will be settled using the “final and binding” arbitration process, in which both parties agree to accept an appointed arbitrator’s decision as final.

Normal business operations are to resume Tuesday on CP lines and will continue during the arbitration period, O’Regan said, and at the end of the arbitration period, “a new collective agreement will be established.”

O’Regan hailed the outcome as “further evidence that when employers and unions work together, we get the best results for Canadians and for our economy” and thanked mediators from the Federal Mediation and Conciliation Service who “worked closely with the parties and have supported them throughout their negotiations.”

“The decision to agree to final and binding arbitration is not taken lightly,” TCRC spokesperson Dave Fulton said Tuesday morning. “While arbitration is not the preferred method, we were able to negotiate terms and conditions that were in the best interest of our members.”

CP, in a separate release Tuesday morning, said it “will immediately begin working with customers to resume normal train operations across Canada as soon as possible.”

CP service had halted just after midnight ET Sunday morning, after the company served the union with a lockout notice, saying it had received a strike notice from the union due to take effect at the same time.

Calgary-based CP and the TCRC, which represents about 3,000 CP workers, had been in talks toward a new collective bargaining agreement to replace a contract that expired at the end of 2021.

Disputes over issues including pensions, wages and benefits escalated after the TCRC announced that during a strike vote conducted in Feburary, its members had voted almost 97 per cent in favour of strike action.

While the effects of rail work stoppages on Western Canada’s grain, oilseed and pulse crop growers and handlers have been well documented in previous strikes and lockouts, a work stoppage this spring also stood to choke the feed supply lines for livestock feeders in the region, who have been relying on U.S. corn delivered by rail following last summer’s drought across the Prairies.

Fertilizer Canada executive vice-president Clyde Graham added Monday that due to “poor rail service leading into the spring season,” his group’s members in the fertilizer manufacturing and distrubution sectors were about two to three weeks backed up already on inventories and storage capacity at their plants.

Representatives from groups including Fertilizer Canada, the Canadian Cattlemen’s Association, the National Cattle Feeders Association and Grain Growers of Canada were in Ottawa Monday to call on the federal government to pass back-to-work legislation to end the work stoppage. — Glacier FarmMedia Network

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Traffic halted on CP lines just after midnight ET Sunday morning as the company fulfilled its lockout notice on about 3,000 workers. The company said it had been served with strike notice from the workers’ union which was due to take effect at the same day and time.

Negotiators for CP and for the Teamsters Canada Rail Conference, which represents the workers, “remain at the table,” federal Labour Minister Seamus O’Regan said on Twitter Monday. “We have faith in their ability to reach an agreement. Canadians expect them to do that ASAP.”

O’Regan added he would remain “here in Calgary until they do.”

A negotiated settlement, however, can’t come fast enough for representatives of the Canadian Cattlemen’s Association, National Cattle Feeders Association, Grain Growers of Canada and Fertilizer Canada, who on Monday afternoon in Ottawa called for back-to-work legislation.

Groups have been pressing for the company and union to reach a deal, CCA president Bob Lowe said at Monday’s press conference, but with the work stoppage now underway they “have to ask the federal government to intervene and implement back-to-work legislation immediately.”

The drought-dented Prairie harvest of 2021 has left cattle producers and cattle feeders across the region dependent on feed corn railed in from the U.S. via CP, whose lines provide the most direct connections between U.S. railways in the Plains states and the cattle-feeding regions of southern Alberta.

“We already have experienced the significant impact disruptions in rail can have on our producers, as this January due to (the omicron variant of COVID-19) and cold weather, trains were delayed and this resulted in severe feed shortages and some cattle producers coming within hours of running out of feed,” Lowe said Monday.

Trains have been running these past several weeks, he said, but producers “have not been able to build a stockpile of feed and currently we only have a one- to two-week buffer of feed in the system before we won’t have any feed for our cattle.”

To put the region’s feed corn needs in perspective, NCFA chair James Bekkering said CP in 2021 alone imported 8,100 cars of corn, he said, up from just 600 in 2020. So far in 2022, he said, the industry has already exceeded that 2021 figure — and consistent transport of feed has “already been compromised for months.”

Cattle require a consistent ration, he said, so feed types can’t be quickly swapped out based on whatever’s most available. Any changes that are made involve working closely with livestock nutritionists to introduce new feeds at a rate that won’t impact animal health. “Cattle cannot simply eat something new each week.”

Trucking U.S. corn into the region is also not an option, Lowe reiterated, noting previous estimates that over 1,000 Super B trucks would be needed each week to replace the volume coming in on CP track — and that level of truck capacity is unavailable.

From grain growers’ perspective, “cash flow is king,” Grain Growers of Canada executive director Erin Gowriluk said at the press conference. The railways represent “the only way to bring what little remains of last year’s grain to market and support what we hope will be a bounce-back season for Canadian crops… For every week that we’re offline, it will take a month to recover from that backlog.”

Also, she said, given the war in Ukraine frustrating grain traffic out of the Black Sea region, Canada’s international customers “require quick reassurance that a spring crop will go in the ground without delays caused by supply chain interruptions.”

‘Already behind’

Fertilizer Canada, which represents fertilizer manufacturers and distributors, “respects the collective bargaining process, but we feel we have now reached the point where the government must intervene,” that group’s executive vice-president Clyde Graham said Monday.

Seeding “four to six weeks away” in Canada depending on the region and sooner in parts of the U.S. to which Fertilizer Canada members export, he said.

“Due to poor rail service leading into the spring season, Fertilizer Canada members are two to three weeks already behind on inventories and storage capacity at fertilizer production facilities,” he said.

There’s a “brief window,” he said, where farmers fertilize crops and are counting on timely supplies to make up last year’s losses.

Seventy-five per cent of fertilizer products are shipped by rail, he said, leaving the group’s member companies “days away from curtailing production and shutting down facilities.”

When asked about hesitancy among politicians across the House to call directly for back-to-work legislation, Graham said “I’m hopeful that equivocation is an attempt to respect the collective bargaining process, and that when the time comes — which is now — to implement back-to-work legislation, the politicians and senators in Parliament will act quickly and decisively.”

Nova Scotia Liberal MP Kody Blois, the current chair of the Commons’ agriculture committee, said at the same press conference that while it was important for the ag sector’s concerns to be aired, he’s “quite confident that members of Parliament across the House understand the implications and how impactful this is, and how problematic it is.”

MPs, he said, “certainly want to be mindful of protecting the collective bargaining process, but at the same time there is a collective interest here, vis-a-vis the fact that we’ve just gone through COVID” with its supply chain impacts, followed by the rise of war in Ukraine “creating a whole new dynamic.”

Canada, “in my view, and I believe in others’ view as well, has a responsibility to be there, not only for our own food security but for global food security.”

Beyond Monday’s press conference, other farm and agrifood sector groups also weighed in Monday with calls for a quick end to the CP stoppage, via legislation or otherwise.

“Farmers have a limited growing season and any disruption to transportation of important inputs will mean we don’t get the seed in the ground with the nutrients that the seed needs to grow and ultimately we will lose out on production,” Grain Farmers of Ontario chair Brendan Byrne said in a separate release.

“Lower production on the farm means less food in the system here at home and less to help those worldwide that will desperately need our help.”

The Western Canadian Wheat Growers, in a separate release, said it held the Teamsters accountable for the stoppage and also called for immediate back-to-work legislation.

The Canadian Oilseed Processors Association, meanwhile, said its members “will be forced to curb production and unfortunately experience preventions and delays in executing customer contracts” due to the CP stoppage.  — Glacier FarmMedia Network

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“The work stoppage has begun, but CP and (the Teamsters Canada Rail Conference) are still at the table with federal mediators,” federal Labour Minister Seamus O’Regan said in a statement just after midnight ET Sunday.

Negotiators from the company and union “are working through the night,” he added, and the government is “monitoring the situation closely and expect the parties to keep working until they reach an agreement.”

O’Regan arrived in CP’s home town of Calgary earlier Saturday, saying in a video statement on Twitter that “notice of a work stoppage could not have come at a worse time.”

Canada’s supply chains, he said, “are still reeling from COVID-19, and the Russian invasion of Ukraine has placed enormous pressure on oil markets and grain supplies” — and both commodities “rely heavily on rail” in Canada.

To “ranchers concerned about feeding their cattle here in the Prairies” as well as “farmers worried about the window to fertilize their crop” as well as manufacturers, O’Regan said, “I hear you loud and clear.”

The parties in the labour dispute, he said, “have an enormous responsibility to all Canadians to negotiate an agreement that protects the supply chains that Canadians depend on.”

The unionized employees voted in February in favour of a strike that could have begun Wednesday (March 16) at the earliest. CP served the union with 72 hours’ lockout notice that day. CP on its website has also since posted a copy of a notice dated March 16 from the union of its intent to strike at the same time Sunday.

CP CEO Keith Creel said March 16 that the company “simply cannot prolong for weeks or months the uncertainty associated with a potential labour disruption.”

CP said on its website earlier this week it had “commenced its work stoppage contingency plan and will work closely with customers to achieve a smooth, efficient and safe wind-down of Canadian operations.”

“Shortly before the lockout was announced, the Teamsters union expressed its desire to continue bargaining,” the union said in a separate release late Saturday, minutes before the lockout took effect. “Unfortunately, the employer chose to put the Canadian supply chain and tens of thousands of jobs at risk.”

Teamsters spokesperson Dave Fulton, in Saturday’s release, said CP management “must be taken to task for this situation. They set the deadline for a lockout to happen tonight, when we were willing to pursue negotiations. Even more so, they then moved the goalpost when it came time to discuss the terms of final and binding arbitration.”

The Teamsters, he said, were “willing to explore” such arbitration, but “were unable to reach an agreement with the employer.”

Wages and pensions remain “major stumbling blocks,” the union said Saturday, but “working conditions that call into question the railway’s capacity to recruit and retain workforce members” are also at issue.

Effects of a railway work stoppage on Prairie grain traffic are well known, but a spring lockout will also affect traffic in fertilizer. Last summer’s drought in Western Canada has also left livestock feeders in the region dependent on CP to bring corn up from the U.S. by rail.

“We have communicated with both negotiating parties and government representatives the absolute need to have trains continue moving. Otherwise we will have an animal care emergency on our hands,” Canadian Cattlemen’s Association president Bob Lowe said Friday. — Glacier FarmMedia Network

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The Teamsters Canadian Rail Conference – Conductors, Trainpersons and Yardpersons (TCRC-CTY) announced Monday that a strike vote it conducted through February went 96.7 per cent in favour of strike action “if necessary.”

The vote was originally to run until Feb. 21 as ballots went out starting Feb. 1 to 3,062 eligible TCRC-CTY members. It was later extended to Feb. 28 following “numerous requests for replacement ballots due to various reasons including undelivered ballots.”

The Teamsters said Monday they still plan to “continue to participate in the mediation process” with CP and the federal labour ministry’s Federal Mediation and Conciliation Services (FMCS), with meetings now due to be held March 11-16.

However, the union said, local Teamsters chiefs will now discuss making the “preparations necessary” in case a strike or lockout begins March 16.

“While we are committed to negotiating collective agreements, we must move forward to make the arrangements for a work stoppage if required,” the Teamsters said Monday.

The “main issues at hand” in their dispute with CP are wages, benefits, and pensions, the union said previously.

For its part, CP said Thursday it has “offered a fair and balanced agreement, including wage increases, for a two-year collective agreement, and have agreed to 20 union demands on benefits and work rules in order to achieve labour certainty and stability for the next two years.”

A spokesperson for Calgary-based CP said Thursday the railway “has an excellent track record of successful collective bargaining with our unions (but) unfortunately, the TCRC has relied on federal conciliation in eight of the nine collective bargaining negotiations since 1993.”

The most recent collective bargaining agreement between CP and the TCRC-CTY expired at the end of 2021.

That four-year agreement was reached after a one-day strike in May 2018; the deal leading up to the 2018 strike was itself reached after a one-day strike in February 2015, ending in binding arbitration.

CP said Thursday TCRC leadership now “appears poised to force a shutdown of the essential rail supply chain, jeopardizing Canada’s national economy, by making unreasonable demands.”

No matter how long any work stoppage lasts, CP added, it would “impact virtually all commodities within the Canadian supply chain” and its consequences “will be felt long after workers return to work and service resumes.”

In a separate release later Thursday, the Canadian Cattlemen’s Association and National Cattle Feeders’ Association underlined that point by warning that any labour-related disruption in the current flow of feed grain shipments from the U.S. “will significantly impact the ability of beef producers to feed their cattle.”

Producers of feed grains across Western Canada saw their yields severely curbed by drought in 2021, leading to a major increase in northbound truck and train shipments of U.S. corn for feed.

However, cross-border road and rail transportation issues up until now had “already reduced feed availability and feeders have been managing their needs on a train-by-train basis,” the associations said. “There is no buffer in the system.”

The two groups said they “strongly encourag(e) both sides to reach a solution prior to the strike action deadline” and failing that, CP and the Teamsters “should move directly to binding arbitration to avoid a strike and the resulting necessity of implementing back-to-work legislation.”

The groups estimated “over 1,000 super-B trucks would be needed weekly” to replace the volume of feed grain CP trains now handle — and “trucking capacity is not available, leaving no alternative solutions.” — Glacier FarmMedia Network

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The Teamsters Canada Rail Conference (TCRC), which represents about 3,000 CP employees in those categories, said strike ballots were being distributed to members starting Feb. 1, with the balloting period to start Friday and run to Feb. 21.

In a release Thursday, the union said it expects to have the results of its vote in hand by the end of the month.

The union’s negotiating committee had said in a memo to local chairs in December that it would file a “notice of dispute” with the federal labour ministry regarding its talks with Calgary-based CP.

Labour Minister Seamus O’Regan named a conciliator/mediator from his department’s Federal Mediation and Conciliation Services (FMCS) to support the negotiation process, the union said Thursday.

Teamster and CP representatives were scheduled to have taken part in meetings with the FMCS conciliator Tuesday to Thursday in Calgary.

Legally, the union noted, a work stoppage can only happen following a 21-day “cooling-off” period after the conciliation process is completed.

The “main issues at hand” in the Teamsters’ dispute with CP are wages, benefits, and pensions, the union said.

CP’s latest collective bargaining agreement with its Teamster-led conductors, engineers, trainmen and yardmen expired at the end of 2021. That four-year deal was reached after a one-day strike in May 2018.

The contract leading up to the 2018 strike was itself reached after a one-day strike in February 2015, ending when the union and company went to binding arbitration. — Glacier FarmMedia Network

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The Teamsters union argued in court filings that Canadian Pacific Railway should face contempt fines of $50,000 a day for making its conductors and locomotive engineers stay late, despite an arbitrator’s decision that ends duty after their shifts.

The case, which has been filed in Federal Court in Toronto, is expected to go to court in 2020, said sources who spoke on condition of anonymity because the dispute is still wading its way through the legal system. No date has been set.

In an emailed statement to Reuters, Calgary-based CP denied that it failed to comply with the arbitrator’s 2018 order, adding it is “vigorously defending” its claim and believes the case should be resolved outside of court.

Workers’ shifts and fatigue emerged as key issues in November during a crippling, eight-day strike at Canadian National Railway, which ended with an agreement-in-principle set to be finalized in late January.

A recording of an exhausted CN conductor facing pressure to move a freight train following his 10-hour shift helped spur a breakthrough in the negotiations.

Transport Minister Marc Garneau is reviewing rail industry proposals submitted this week to introduce new work-rest rules for railway employees, as part of broader efforts by North American regulators to fight fatigue.

CP said in the emailed statement that the parties are currently “working to resolve a host of procedural issues” in the case.

Mixing arbitration and the courts is a departure from the normal practice of separating the two fields, following a 1995 Supreme Court of Canada decision on the matter, a human resources expert said.

“It would be very uncommon,” said Rafael Gomez, director of the Centre for Industrial Relations and Human Resources at the University of Toronto.

CP argued Federal Court is the wrong forum to hear “complex operational issues” such as the ones in the case.

The Teamsters Canada Rail Conference (TCRC) union and Canada’s large railways have clashed for years over working hours in the 24-hour, mostly on-call industry serving far-flung locations, where delays are common because of bad weather and congestion.

“These issues can and should be dealt with through the processes already provided for under the collective agreement between the parties,” CP said.

The TCRC, which declined comment, argued in the June 2019 filing that CP left it no other choice but to go to court.

“The union has now been forced to seek this contempt motion because the violations continue to occur hundreds of times every month,” said the TCRC, which represents thousands of Canadian rail workers.

The union said it identified 6,215 violations of workers’ rest provisions between the publication of the arbitrator’s order on March 23, 2018, and Dec. 19, 2018.

CP’s unionized locomotive engineers and conductors can book rest within 10 hours if they give proper notice, and can be off duty within 12 hours, barring extenuated circumstances outside the railway’s control, such as bad weather.

Rail workers in Canada and the U.S. can work a maximum of 12 hours, according to regulations in each country.

While arbitrator Graham Clark did not side fully with the union or CP, his March 2018 decision issued a cease and desist order after “CP’s own evidence indicated that thousands of situations continue to occur annually where employees are not off within 10 hours.”

Most of the workers were kept less than an hour late.

“The health and safety of the union’s members (and the public), maximum hours of work and their right to book rest if they are fatigued, is of paramount concern,” the union said in the 2019 filing.

— Reporting for Reuters by Allison Lampert in Montreal and Anna Mehler-Paperny in Toronto; additional reporting by Kelsey Johnson in Ottawa.

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