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UNFAIR BARGAINING
CP Rail will lock out 3,000 conductors and engineers if they don't have a deal with the union by SundayTHEY RELY ON BACK TO WORK LAW
Jake Edmiston
Financial Post
“It’s time to start thinking about making the rail system an essential service,” he said. “How do we create a more reliable system that isn’t, every few years, held captive by the inability of railways and their unions to get along?”
The Western Grain Elevator Association (WEGA), which represents major grain companies including Cargill Ltd. and Viterra Canada Inc., said both CP and the union need to realize a work stoppage would have “serious consequences” for Canada’s agricultural sector, which is already reeling after last summer’s drought dramatically reduced crop yields.
Grain companies with operations on CP rail lines are “beholden to a monopoly service provider and do not have any competitive options in shipping grain to flour mills, grain processing facilities and feedlots both domestically and internationally,” the association said.
“The world needs Canada’s grain now more than ever, and it is unconscionable that anyone would leverage the current domestic and global circumstances to benefit their individual interests,” WGEA executive director Wade Sobkowich said on March 15.
• Email: jedmiston@postmedia.com | Twitter: jakeedmiston
Union issues strike notice to CP Rail as groups ask Ottawa to prevent work stoppage
TORONTO — Canadian Pacific Railway Ltd. said Thursday it has received strike notice from the union representing its engineers, conductors and other train employees.
CP Rail and Teamsters Canada have been negotiating a new collective agreement since September, and earlier this month, union members voted to authorize a strike if necessary.
Canadian Pacific Railway Ltd. will lock out 3,000 conductors and locomotive engineers if union officials won’t make a deal by this Sunday, March 20, the company said.
CP and Teamsters Canada have been negotiating a new collective agreement since September, and union members earlier this month voted to authorize a strike if necessary. While a strike was possible as of March 16, the union hadn’t yet opted for one. CP said it decided on a lockout to avoid dragging out the situation indefinitely.
“Delaying resolution would only make things worse,” CP chief executive Keith Creel said in a news release. “We take this action with a view to bringing this uncertainty to an end.”
Hours after CP gave notice of the March 20 lockout, Teamsters Canada Rail Conference said the union intends to strike on the same day, according to a statement from federal Labour Minister Seamus O’Regan. He urged both parties to “consider making the compromises necessary to reach a deal” before the March 20 deadline.
“We understand what’s at stake,” O’Regan said in a Tweet on March 16, adding that he and Transport Minister Omar Alghabra are monitoring the situation.
Canadian business and agricultural leaders have been warning that a work stoppage at the railway would be “catastrophic” for the flow of goods across the country, at a time when supply chain disruptions have already driven up food costs to a level not seen in almost 13 years.
This growing season, Canadian grain farmers are under more pressure than usual to produce a good crop, since Russia’s invasion of Ukraine has destabilized farming operations in one of the world’s most important grain-growing regions. At a time when the world needs more Canadian grain, a rail stoppage would “directly damage Canada’s capacity to act as a reliable source,” said the Canadian Federation of Agriculture, which represents more than 200,000 farmers across the country.
Company and union officials have been meeting daily with federal mediators over the past week, but “our positions remain far apart,” CP said.
TCRC, which represents about 3,000 of CP’s engineers, conductors, yardpersons and trainpersons, said the lockout threat will only sour negotiations, not speed them up.
“It doesn’t make any sense,” said Teamsters Canada spokesperson Stéphane Lacroix. “They’re upsetting our negotiators at the negotiation table. It’s really not a good strategy.”
TCRC has said the main issues are wages, pensions and work rules. But Lacroix said the main issue holding up negotiations is the work rules, since the union has been pushing for more “human” schedules for train staff.
The company noted that the average annual salary is $135,442 for a TCRC locomotive engineer and $107,872 for a conductor, yardperson or trainperson. CP said it tabled an offer on Tuesday that addressed 26 outstanding issues, but the offer was rejected.
In its lockout notice, CP gave TCRC until 12:01 a.m. on March 20 to either come to a negotiated settlement or agree to binding arbitration before a lockout.
“The Canadian economy could avoid all the pain and damage of a work stoppage if the TCRC would agree to binding arbitration,” Creel said.
Tom Steve, general manager at the Alberta Wheat and Barley Commissions, said a rail disruption would cause serious operational issues for the coming spring planting season. Farmers depend on rail to carry crucial inputs, such as fertilizer and pesticides, but they also depend indirectly on rail to generate enough cash to cover their spring costs.
Steve said farmers at this time of year tend to sell the last 10 to 20 per cent of the previous season’s harvest to help finance planting. But if a grain company can’t get access to rail capacity, they’ll order less crop from farmers.
“They need the rail cars to move that crop, or they will not call in the deliveries,” he said. “The farmer doesn’t get paid until they dump it in the pit.”
The threat of rail disruptions is a “recurring nightmare” for farmers in Western Canada, where CP dominates much of the southern Prairies and Canadian National Railway Co. dominates the central and northern areas, he said. The geographical split means CP’s clients are likely out of options when service shuts down.
“If CP goes on strike, CN is not able to pick up all that business. It would be virtually impossible,” Steve said, adding that in 2019, a weeklong CN rail strike backed up the entire grain supply chain. Grain shippers move product every week, so missing even one week means “we’re playing catch-up” for the rest of the year.
Canadian Pacific Railway Ltd. will lock out 3,000 conductors and locomotive engineers if union officials won’t make a deal by this Sunday, March 20, the company said.
CP and Teamsters Canada have been negotiating a new collective agreement since September, and union members earlier this month voted to authorize a strike if necessary. While a strike was possible as of March 16, the union hadn’t yet opted for one. CP said it decided on a lockout to avoid dragging out the situation indefinitely.
“Delaying resolution would only make things worse,” CP chief executive Keith Creel said in a news release. “We take this action with a view to bringing this uncertainty to an end.”
Hours after CP gave notice of the March 20 lockout, Teamsters Canada Rail Conference said the union intends to strike on the same day, according to a statement from federal Labour Minister Seamus O’Regan. He urged both parties to “consider making the compromises necessary to reach a deal” before the March 20 deadline.
“We understand what’s at stake,” O’Regan said in a Tweet on March 16, adding that he and Transport Minister Omar Alghabra are monitoring the situation.
Canadian business and agricultural leaders have been warning that a work stoppage at the railway would be “catastrophic” for the flow of goods across the country, at a time when supply chain disruptions have already driven up food costs to a level not seen in almost 13 years.
This growing season, Canadian grain farmers are under more pressure than usual to produce a good crop, since Russia’s invasion of Ukraine has destabilized farming operations in one of the world’s most important grain-growing regions. At a time when the world needs more Canadian grain, a rail stoppage would “directly damage Canada’s capacity to act as a reliable source,” said the Canadian Federation of Agriculture, which represents more than 200,000 farmers across the country.
Company and union officials have been meeting daily with federal mediators over the past week, but “our positions remain far apart,” CP said.
TCRC, which represents about 3,000 of CP’s engineers, conductors, yardpersons and trainpersons, said the lockout threat will only sour negotiations, not speed them up.
“It doesn’t make any sense,” said Teamsters Canada spokesperson Stéphane Lacroix. “They’re upsetting our negotiators at the negotiation table. It’s really not a good strategy.”
TCRC has said the main issues are wages, pensions and work rules. But Lacroix said the main issue holding up negotiations is the work rules, since the union has been pushing for more “human” schedules for train staff.
The company noted that the average annual salary is $135,442 for a TCRC locomotive engineer and $107,872 for a conductor, yardperson or trainperson. CP said it tabled an offer on Tuesday that addressed 26 outstanding issues, but the offer was rejected.
In its lockout notice, CP gave TCRC until 12:01 a.m. on March 20 to either come to a negotiated settlement or agree to binding arbitration before a lockout.
“The Canadian economy could avoid all the pain and damage of a work stoppage if the TCRC would agree to binding arbitration,” Creel said.
Tom Steve, general manager at the Alberta Wheat and Barley Commissions, said a rail disruption would cause serious operational issues for the coming spring planting season. Farmers depend on rail to carry crucial inputs, such as fertilizer and pesticides, but they also depend indirectly on rail to generate enough cash to cover their spring costs.
Steve said farmers at this time of year tend to sell the last 10 to 20 per cent of the previous season’s harvest to help finance planting. But if a grain company can’t get access to rail capacity, they’ll order less crop from farmers.
“They need the rail cars to move that crop, or they will not call in the deliveries,” he said. “The farmer doesn’t get paid until they dump it in the pit.”
The threat of rail disruptions is a “recurring nightmare” for farmers in Western Canada, where CP dominates much of the southern Prairies and Canadian National Railway Co. dominates the central and northern areas, he said. The geographical split means CP’s clients are likely out of options when service shuts down.
“If CP goes on strike, CN is not able to pick up all that business. It would be virtually impossible,” Steve said, adding that in 2019, a weeklong CN rail strike backed up the entire grain supply chain. Grain shippers move product every week, so missing even one week means “we’re playing catch-up” for the rest of the year.
“It’s time to start thinking about making the rail system an essential service,” he said. “How do we create a more reliable system that isn’t, every few years, held captive by the inability of railways and their unions to get along?”
The Western Grain Elevator Association (WEGA), which represents major grain companies including Cargill Ltd. and Viterra Canada Inc., said both CP and the union need to realize a work stoppage would have “serious consequences” for Canada’s agricultural sector, which is already reeling after last summer’s drought dramatically reduced crop yields.
Grain companies with operations on CP rail lines are “beholden to a monopoly service provider and do not have any competitive options in shipping grain to flour mills, grain processing facilities and feedlots both domestically and internationally,” the association said.
“The world needs Canada’s grain now more than ever, and it is unconscionable that anyone would leverage the current domestic and global circumstances to benefit their individual interests,” WGEA executive director Wade Sobkowich said on March 15.
• Email: jedmiston@postmedia.com | Twitter: jakeedmiston
Union issues strike notice to CP Rail as groups ask Ottawa to prevent work stoppage
TORONTO — Canadian Pacific Railway Ltd. said Thursday it has received strike notice from the union representing its engineers, conductors and other train employees.
© Provided by The Canadian Press
The move is the latest escalation in a labour dispute at the Calgary-based railway that could result in a potential nation-wide work stoppage as early as 1 a.m. EST on Sunday.
CP Rail indicated Wednesday night that it had issued a 72-hour notice to the Teamsters Canada Rail Conference of its plan to lock out almost 3,000 employees on Sunday, 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.
But Canadian business organizations are calling on Ottawa to prevent a potential work stoppage at Canadian Pacific Railway Ltd., which could further hamper companies recovering from COVID-19 restrictions and supply chain problems.
Roughly 45 industry groups said Thursday that any disruption would hinder Canada's freight capacity and hurt the broader economy as it grapples with inflation, product shortages, rising fuel costs and the Russian invasion of Ukraine.
"Any disruption would further cripple Canada’s freight capacity and have a profound impact on not only rail shippers, but all shippers, including trucking and air, throughout the broader Canadian economy," the groups said in a statement.
"It would do irrevocable damage to Canadian supply chains that would extend beyond our borders and harm our reputation as a reliable partner in international trade."
The groups behind the statement included the Retail Council of Canada, the Canadian Chamber of Commerce, the Canadian Manufacturers and Exporters and the Business Council of Canada.
Federal Labour Minister Seamus O’Regan said Wednesday night that Ottawa is "monitoring the situation closely" and wants both parties to consider making compromises to reach a deal that is fair for workers and the employer.
But the industry groups want the government to go further.
"CP has stated that it is willing to immediately enter binding arbitration to resolve this matter without a work stoppage," the groups said.
"The government must do everything in its power to get the union to agree."
One of the groups that was part of the statement, the Canadian Federation of Independent Business, added that it's important for the government to ensure both parties remain at the negotiation table and service remain uninterrupted because it is already a challenging time for businesses.
The organization, which represents at least 110,000 small businesses, estimates only 35 per cent of businesses have returned to normal sales and about 89 per cent of small businesses are impacted by supply chain challenges, with retail, manufacturing, and construction businesses being the hardest hit sectors.
Three in ten business owners have seen their business’ costs increase by more than 20 per cent due to supply chain issues, while 39 per cent have waited waiting more than a month for shipments, CFIB said.
"The work stoppage will cause additional burdens on many of these businesses and put their future and the livelihood of their employees at a greater risk," said Jasmin Guenette, vice-president of national affairs.
Canada's agriculture industry has also expressed concern about a potential work stoppage at CP.
Farm groups have warned any delay on the rail lines would affect everything from shipments of fertilizer and other inputs during the crucial spring seeding season, as well as deliveries of emergency livestock feed to drought-affected parts of the Prairies.
"Disruptions such as this can reverberate and have consequences throughout the entire food supply chain," said Keith Currie, president of the Canadian Federation of Agriculture, in a news release.
This report by The Canadian Press was first published March 17, 2022.
Companies in this story: (TSX:CP)
Tara Deschamps, The Canadian Press
The move is the latest escalation in a labour dispute at the Calgary-based railway that could result in a potential nation-wide work stoppage as early as 1 a.m. EST on Sunday.
CP Rail indicated Wednesday night that it had issued a 72-hour notice to the Teamsters Canada Rail Conference of its plan to lock out almost 3,000 employees on Sunday, 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.
But Canadian business organizations are calling on Ottawa to prevent a potential work stoppage at Canadian Pacific Railway Ltd., which could further hamper companies recovering from COVID-19 restrictions and supply chain problems.
Roughly 45 industry groups said Thursday that any disruption would hinder Canada's freight capacity and hurt the broader economy as it grapples with inflation, product shortages, rising fuel costs and the Russian invasion of Ukraine.
"Any disruption would further cripple Canada’s freight capacity and have a profound impact on not only rail shippers, but all shippers, including trucking and air, throughout the broader Canadian economy," the groups said in a statement.
"It would do irrevocable damage to Canadian supply chains that would extend beyond our borders and harm our reputation as a reliable partner in international trade."
The groups behind the statement included the Retail Council of Canada, the Canadian Chamber of Commerce, the Canadian Manufacturers and Exporters and the Business Council of Canada.
Federal Labour Minister Seamus O’Regan said Wednesday night that Ottawa is "monitoring the situation closely" and wants both parties to consider making compromises to reach a deal that is fair for workers and the employer.
But the industry groups want the government to go further.
"CP has stated that it is willing to immediately enter binding arbitration to resolve this matter without a work stoppage," the groups said.
"The government must do everything in its power to get the union to agree."
One of the groups that was part of the statement, the Canadian Federation of Independent Business, added that it's important for the government to ensure both parties remain at the negotiation table and service remain uninterrupted because it is already a challenging time for businesses.
The organization, which represents at least 110,000 small businesses, estimates only 35 per cent of businesses have returned to normal sales and about 89 per cent of small businesses are impacted by supply chain challenges, with retail, manufacturing, and construction businesses being the hardest hit sectors.
Three in ten business owners have seen their business’ costs increase by more than 20 per cent due to supply chain issues, while 39 per cent have waited waiting more than a month for shipments, CFIB said.
"The work stoppage will cause additional burdens on many of these businesses and put their future and the livelihood of their employees at a greater risk," said Jasmin Guenette, vice-president of national affairs.
Canada's agriculture industry has also expressed concern about a potential work stoppage at CP.
Farm groups have warned any delay on the rail lines would affect everything from shipments of fertilizer and other inputs during the crucial spring seeding season, as well as deliveries of emergency livestock feed to drought-affected parts of the Prairies.
"Disruptions such as this can reverberate and have consequences throughout the entire food supply chain," said Keith Currie, president of the Canadian Federation of Agriculture, in a news release.
This report by The Canadian Press was first published March 17, 2022.
Companies in this story: (TSX:CP)
Tara Deschamps, The Canadian Press
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