Canada's CP Rail shuts down railroad, LOCKOUT AVOIDS workers strike
By Rod Nickel and Ann Maria Shibu 5 hrs ago
The Canadian Pacific railyard is pictured in Port Coquitlam
(Reuters) - Canadian Pacific Railway (CP) halted operations and locked out workers over a labor dispute early on Sunday, with each side blaming the other for a halt that will likely disrupt shipment of key commodities at a time of soaring prices.
"We are very disappointed with this turn of events," said Teamsters Canada Rail Conference spokesperson Dave Fulton. The union said in a statement that it had begun to strike across the country in the dispute that it says affects 3,000 engineers, conductors and yard workers.
Canada's second-biggest railroad operator accused the union of misrepresenting the company's position, saying in a statement that the Teamsters were "well aware of the damage this reckless action will cause to the Canadian supply chain."
Minister of Labour Seamus O'Regan Jr said CP and Teamsters were still at the table with federal mediators.
"We are monitoring the situation closely and expect the parties to keep working until they reach an agreement," he said in a tweet just after midnight.
Canada, the largest country by area after Russia, depends heavily on rail to move commodities and manufactured goods to port. CP's network runs across much of southern Canada and extends as far south as Kansas City in the United States.
The lockout is the latest blow to Canada's battered supply chain, which last year weathered floods in British Columbia that washed out track and suspended access to Canada's biggest port. CP has said a stoppage would disrupt the movement of grain, potash and coal.
CP had notified the union on Wednesday that it would lock out employees on Sunday, barring a breakthrough in talks on a deal covering pensions, pay and benefits.
It said the key bargaining issue is the union's request for higher pension caps. Chief Financial Officer Nadeem Velani told a New York investor conference on Tuesday that the railway was unwilling to accept that demand.
Canada's Nutrien said this week it may need to reduce potash production at its mines in the province of Saskatchewan if the shutdown lasts longer than a few days.
The country's last major railway labor disruption was an eight-day Canadian National Railway Co strike in 2019. But in the past 12 years, there have been 12 stoppages due to poor weather, blockades or labor issues, according to the Western Canadian Wheat Growers Association.
(Reporting by Ann Maria Shibu in Bengaluru and Rod Nickel in Chicago; Editing by William Mallard and Muralikumar Anantharaman)
(Reuters) - Canadian Pacific Railway (CP) halted operations and locked out workers over a labor dispute early on Sunday, with each side blaming the other for a halt that will likely disrupt shipment of key commodities at a time of soaring prices.
"We are very disappointed with this turn of events," said Teamsters Canada Rail Conference spokesperson Dave Fulton. The union said in a statement that it had begun to strike across the country in the dispute that it says affects 3,000 engineers, conductors and yard workers.
Canada's second-biggest railroad operator accused the union of misrepresenting the company's position, saying in a statement that the Teamsters were "well aware of the damage this reckless action will cause to the Canadian supply chain."
Minister of Labour Seamus O'Regan Jr said CP and Teamsters were still at the table with federal mediators.
"We are monitoring the situation closely and expect the parties to keep working until they reach an agreement," he said in a tweet just after midnight.
Canada, the largest country by area after Russia, depends heavily on rail to move commodities and manufactured goods to port. CP's network runs across much of southern Canada and extends as far south as Kansas City in the United States.
The lockout is the latest blow to Canada's battered supply chain, which last year weathered floods in British Columbia that washed out track and suspended access to Canada's biggest port. CP has said a stoppage would disrupt the movement of grain, potash and coal.
CP had notified the union on Wednesday that it would lock out employees on Sunday, barring a breakthrough in talks on a deal covering pensions, pay and benefits.
It said the key bargaining issue is the union's request for higher pension caps. Chief Financial Officer Nadeem Velani told a New York investor conference on Tuesday that the railway was unwilling to accept that demand.
Canada's Nutrien said this week it may need to reduce potash production at its mines in the province of Saskatchewan if the shutdown lasts longer than a few days.
The country's last major railway labor disruption was an eight-day Canadian National Railway Co strike in 2019. But in the past 12 years, there have been 12 stoppages due to poor weather, blockades or labor issues, according to the Western Canadian Wheat Growers Association.
(Reporting by Ann Maria Shibu in Bengaluru and Rod Nickel in Chicago; Editing by William Mallard and Muralikumar Anantharaman)
Why CP Rail may lock out its workers and what it means for Canada's supply chain
Brooklyn Neustaeter
With files from The Canadian Press and CTV Alberta Bureau Chief Bill Fortier
Brooklyn Neustaeter
CTVNews.ca Writer
@bneustaeter Contact
@bneustaeter Contact
Published Friday, March 18, 2022 
A labour dispute at CP Rail is threatening to further cripple the flow of goods at a time when supply chains are already strained due to the COVID-19 pandemic and Russia's invasion in Ukraine.
Canadian Pacific Railway Ltd. issued a 72-hour notice on Wednesday to the Teamsters Canada Rail Conference, planning to lock out almost 3,000 employees if the union and the company are unable to come to a negotiated settlement or agree to binding arbitration.
The two sides are at odds over 26 outstanding issues, including wages, benefits and pensions.
On Thursday, the Calgary-based railway said it had received strike notice from the union representing its engineers, conductors and other train employees in the latest escalation of the labour dispute that could result in a potential nation-wide work stoppage as soon as early Sunday morning.
However, the disruption to Canada's freight capacity could still be avoided, as both CP Rail and the union say they’re committed to negotiating right up to the deadline.
Canadian business organizations and industry experts are calling on Ottawa to prevent a work stoppage, saying it could further hamper trade recovery from COVID-19 restrictions and supply chain problems.
IMPACT ON CANADIANS
Farm groups have warned any delay on the rail lines could lead to production cuts that would affect everything from shipments of fertilizer and other inputs during spring seeding season to deliveries of emergency livestock feed to drought-affected parts of the Prairies.
"At a time where there is significant global disruptions in the flow of goods, this labour disruption would directly damage Canada’s capacity to act as reliable source agricultural products to global consumers," the Canadian Federation of Agriculture said Thursday in a news release.
"Disruptions such as this can reverberate and have consequences throughout the entire food supply chain."
If there is no rail capacity to transport goods, experts say the work stoppage would lead to increased prices, especially at the grocery store.
"Make no mistake, this is a labour dispute the world cannot afford," Sylvain Charlebois, Dalhousie University professor of food distribution and policy, told CTV National News.
As Canada's economy grapples with inflation, supply chain issues brought on by the COVID-19 pandemic have already driven up the cost of food and other household items. Now, Russia's invasion of Ukraine is threatening the worldwide supply of wheat and adding to increased gas prices at the pumps.
Charlebois said if the work stoppage at CP hinders Canada's rail movement for long enough, Canadians won't just see increased prices, but there will be product shortages.
"We could actually see empty shelves. We could see some grocers struggle to get products to feed Canadians," he said.
Retail expert Heather Thomson told CTV National News that impact of a rail halt could be far-reaching.
"This could cause even higher inflation, longer delays. This could be a big, big hit to the Canadian economy," she said.
Thomson added that Canadian consumers should brace for the impact, and adjust their budgets accordingly.
A labour dispute at CP Rail is threatening to further cripple the flow of goods at a time when supply chains are already strained due to the COVID-19 pandemic and Russia's invasion in Ukraine.
Canadian Pacific Railway Ltd. issued a 72-hour notice on Wednesday to the Teamsters Canada Rail Conference, planning to lock out almost 3,000 employees if the union and the company are unable to come to a negotiated settlement or agree to binding arbitration.
The two sides are at odds over 26 outstanding issues, including wages, benefits and pensions.
On Thursday, the Calgary-based railway said it had received strike notice from the union representing its engineers, conductors and other train employees in the latest escalation of the labour dispute that could result in a potential nation-wide work stoppage as soon as early Sunday morning.
However, the disruption to Canada's freight capacity could still be avoided, as both CP Rail and the union say they’re committed to negotiating right up to the deadline.
Canadian business organizations and industry experts are calling on Ottawa to prevent a work stoppage, saying it could further hamper trade recovery from COVID-19 restrictions and supply chain problems.
IMPACT ON CANADIANS
Farm groups have warned any delay on the rail lines could lead to production cuts that would affect everything from shipments of fertilizer and other inputs during spring seeding season to deliveries of emergency livestock feed to drought-affected parts of the Prairies.
"At a time where there is significant global disruptions in the flow of goods, this labour disruption would directly damage Canada’s capacity to act as reliable source agricultural products to global consumers," the Canadian Federation of Agriculture said Thursday in a news release.
"Disruptions such as this can reverberate and have consequences throughout the entire food supply chain."
If there is no rail capacity to transport goods, experts say the work stoppage would lead to increased prices, especially at the grocery store.
"Make no mistake, this is a labour dispute the world cannot afford," Sylvain Charlebois, Dalhousie University professor of food distribution and policy, told CTV National News.
As Canada's economy grapples with inflation, supply chain issues brought on by the COVID-19 pandemic have already driven up the cost of food and other household items. Now, Russia's invasion of Ukraine is threatening the worldwide supply of wheat and adding to increased gas prices at the pumps.
Charlebois said if the work stoppage at CP hinders Canada's rail movement for long enough, Canadians won't just see increased prices, but there will be product shortages.
"We could actually see empty shelves. We could see some grocers struggle to get products to feed Canadians," he said.
Retail expert Heather Thomson told CTV National News that impact of a rail halt could be far-reaching.
"This could cause even higher inflation, longer delays. This could be a big, big hit to the Canadian economy," she said.
Thomson added that Canadian consumers should brace for the impact, and adjust their budgets accordingly.
CP Rail has given 72 hour notice of plans to lock employees out. Austin Lee has more.
Concerns over possible CP Rail strike
Concerns over possible CP Rail strike
With files from The Canadian Press and CTV Alberta Bureau Chief Bill Fortier
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