As of Monday morning, August 26, 2024, railways for CN and CPKC are operational again, following a decision by the Canada Industrial Relations Board (CIRB) made on the weekend. 

The labour dispute, however, is far from over, with the Teamsters Canada Rail Conference set to appeal the ruling in court. 

The work stoppage at both national railways began last Thursday, with more than 9,000 railway workers locked out, affecting both national freight lines and commuter lines in the Toronto, Montreal, and Vancouver areas. 

We will continue to provide updates as this complex situation unfolds. If you need support navigating the uncertainty, please reach out.

August 23 Update:

Rail service at Canadian National Railway (CN) has been temporarily restored following an intervention from the federal government. However, the Teamsters union has issued a 72-hour strike notice, meaning rail workers could put up picket lines again barring a breakthrough in negotiations or a government order. 

As of Friday morning, the work stoppage at Canadian Pacific Kansas City (CPKC) is continuing, pending an order from the Canadian Industrial Relations Board (CIRB). 

We will continue to provide updates as the situation unfolds. If you need support navigating this complex situation, please reach out.

Original post: Rail Network Shutdown in Canada: Current Status and Alternative Solutions.

On August 22nd, 2024, the country’s largest railways—Canadian National (CN) and Canadian Pacific Kansas City (CPKC)—formally locked out union rail employees, resulting in a complete shutdown of the rail network across Canada.

Discussions with industry leaders, including contacts within CP and CN, suggest that this shutdown could potentially last up to two weeks, as negotiations between the parties remain at a standstill. While we hope for a quicker resolution, Canaan Group stands ready to assist our customers with urgent cargo needs during this challenging time.

Marine Terminal Updates

• Operational Status: Marine terminals remain open; however, some vessels are experiencing delays in receiving export cargo.
• Vessel Diversions: Certain vessels are considering bypassing ports in Vancouver, Prince Rupert, Montreal, and Halifax.
• Import Containers: Available for pickup, though special reservations may be required.
• Export Containers: Receiving is limited due to a shortage of empty equipment and early return dates (ERD) for vessels.

Alternate Shipping Options

• Air Freight: Less-than-container load (LCL) cargo is being redirected to air freight.
• Import Containers: Containers discharged in Canada remain available for pickup. Containers discharged in the U.S. will need to be trucked to Canada and cleared through customs.
• Export Containers: While marine terminals remain open, export containers can still be received on a limited basis. However, as congestion builds, these containers may need to be rerouted to U.S. ports, including Tacoma, Seattle, and New York, for export.
• Refrigerated Cargo: Urgent refrigerated shipments can be expedited via truck to the U.S. These shipments will require a T1 bond to avoid customs delays.

For more information or assistance, please contact your Canaan Group representative at sales@canaangroup.ca or info@canaangroup.ca.

Update, August 14, 2024

In anticipation of a possible work stoppage, Canada’s two national railways have issued the following notices.

Canadian National (CN) railway:

• CN has embargoed all Rail Security Sensitive Materials (RSSM), Poison Inhalation Hazard (PIH), Toxic Inhalation Hazard (TIH), and other time-sensitive commodities coming into Canada from the USA, effective August 12.
• An additional embargo on these commodities from within Canada will take effect on August 15.
• CN will restrict ingates for all temperature-controlled Intermodal traffic and Intermodal Hazmat traffic across its network starting August 15.
• An embargo on all Intermodal interchange traffic from the US coming to Canada will take effect on August 16.
• Get the latest information on embargos at the CN’s Bargaining Updates page.

Canadian Pacific Kansas City (CPKC):

A formal lockout notice has been given to the union (TCRC). Should an agreement not be reached, the CPKC rail network will shut down at just past midnight Eastern Time on August 22. Additionally, CPKC has already begun embargoes on freight classified as toxic or poisonous inhalation hazards. Please find the latest information on CPKC’s update page.

Posted August 9, 2024: The Canadian Industrial Relations Board (CIRB) ruled today that a work stoppage at Canada’s two national railways would not cause an immediate threat to public health and safety, clearing the way for a possible strike as early as August 22. 

“Today, the Canada Industrial Relations Board ruled that no activities need to be maintained in the event of a strike or lockout at CN or CPKC,” Labor Minister Steven MacKinnon said in a statement. “The CIRB has also imposed a 13-day cooling off period before a strike or lockout can occur.”

Canadian National and Canadian Pacific Kansas City responded to the announcement by saying they would lock out members of the Teamsters Canada Rail Conference if a settlement or an agreement to participate in binding arbitration could not be reached. 

In its own statement, the union said, “Workers’ right to strike had been temporarily suspended pending today’s decision by the CIRB. This effectively robbed the union of leverage. Absent the threat of a work stoppage, neither company had been willing to compromise or show any flexibility in their demands.”

The union said it would provide a 72-hour advance notice of a strike action, as required, if no contract agreement is reached.

Labour Minister Steven MacKinnon released a statement saying that both sides in the work dispute have a responsibility to all Canadians to come to the negotiation table and work constructively toward a settlement. 

Businesses across the supply chain in Canada are now having to prepare with more urgency for the possibility of significant disruptions should a work stoppage begin. As a leading forward-thinking organization, Canaan Group continues to discuss with customers how to begin planning for cargo re-diversion, alternative planning, and cargo risk mitigation. Contact us today at sales@canaangroup.ca for support.

July 2 update:

Close to 10,000 workers at CN and CPKC have voted to reauthorize strikes at both companies, if negotiated settlements cannot be reached. Overall, workers voted 98.6% to reauthorize a strike, with an 89.5% turnout.

Original post, June 28:

Teamsters Canada Rail Conference, representing 9,000 CN and CPKC workers, is holding a second vote to authorize a work stoppage as the dispute over wages continues. The vote began June 14 and ends June 29.

The union voted in favour of strike in May, but a possible work stoppage was delayed when the Canada Industrial Relations Board (CIRB) began its review to determine possible public safety repercussions of a strike.

Should the second vote authorize a strike, a work stoppage could begin 72 hours following the CIRB ruling. The earliest a strike could occur is mid-July, according to the CPKC.

As indicated by the involvement of the CIRB, any work stoppage could be highly disruptive to many industries in Canada, as the railroads are an essential part of shipment logistics. Please contact us at sales@canangroup.ca to explore how we can minimize disruption to your operations through the uncertainty of these negotiations and during a strike.

The Canada Industrial Relations Board (CIRB) has been asked to review the implications for essential commodities of a potential strike among unionized railway workers. A work stoppage could have started as early as May 22, but the CIRB process delays the earliest starting date to July 15 and creates new uncertainties around disruptions to both freight traffic and commuter services. 

A work stoppage can only begin following a decision from the board and 72 hours notice from the union. 

The Canadian Pacific Kansas City (CPKC) offered to enter binding arbitration with the union, the Teamsters Canada Rail Conference (TCRC), to avoid a strike, but the union declined. CPKC has also suggested that an agreement be reached with the TCRC about which services should be maintained during work stoppage.

“We believe this would eliminate the need for the CIRB referral process and bring much needed clarity regarding the timing of any potential strike or lockout,” the railway said. “If no maintenance of services agreement is reached, based on precedent, it is unlikely the parties will be in a position to initiate a legal strike or lockout within the next 60 days.”

The CPKC and TCRC will resume meeting on May 17, 2024, in an attempt to move negotiations forward. At issue is the proposal of the railways (CPKC and Canada National) to shift train crews from the traditional mileage-based pay to hourly pay.

Please contact us at sales@canangroup.ca to explore how we can minimize disruption to your operations through the uncertainty of these negotiations.

Thousands of unionized workers at both of Canada’s major railways — Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC) — have voted overwhelmingly in favour of a strike, which could begin as soon as May 22. This comes after months of negotiations over rest periods reached an impasse, following the expiry of the previous contract at the end of 2023.

A strike would cause significant disruptions to grain, potash, and coal exports, in particular, which rely on railways for transport across Canada. Concerned about the economic implications of a work stoppage, federal Labour Minister Seamus O’Regan has asked the Canada Industrial Relations Board to look at whether the strike might have safety implications, such as the supply of fuel to hospitals. The strike cannot start until the board makes its decision, with the Teamsters union confirming that they would comply with any order from the board.

Shipping companies are drawing up contingency plans, with exports possibly being rerouted through the U.S. to reach coastal ports. However, backlogs will be inevitable during a work stoppage, and an extended recovery would be needed should the strike not resolve in a few days. 

Please contact us at sales@canangroup.ca to explore how we can minimize disruption to your operations during a potential work stoppage.