CANADIAN PACIFIC RAIL STRIKE
LOCATION: National
Issue/Source: CP Work Stoppage
Date: March 17, 2022
Suggested Responses
- A consistent, reliable, and efficient rail network is vital to supporting the Canadian economy, and Canadian communities.
- Many stakeholders have expressed grave concerns about the challenges they will face, and shippers have also noted the potential for additional strain on Canada’s supply chain.
- Certain goods cannot be stockpiled, and others move in high enough volume, requiring regular rail service, to make trucking or other alternatives impractical and costly.
- We continue to monitor the situation closely, and are in daily contact with railways, ports, and key shippers. We are also working closely with other federal departments such as the Labour Program in Employment and Social Development Canada, Agriculture and Agri-Foods Canada and Natural Resources Canada to better understand potential impacts. We remain hopeful that a resolution is reached soon.
Responsive, if pressed for details on a Back to Work Legislation
- The Government of Canada respects and has faith in the collective bargaining process.
- Employment and Social Development Canada is best placed to provide further information regarding federal action concerning the Canadian Pacific Railway work stoppage.
BACKGROUND INFORMATION
- Teamsters Canada conducted a strike vote in February 2022 among its 3000 members (Engineers, Conductors, Trainspersons and Yardpersons) of Canadian Pacific. The result of the vote was that 96.7% voted in favour of a strike.
- Canadian Pacific (CP) Railway issued 72-hour notice to the Teamsters Canada Rail Conference (TCRC)-Train & Engine of its plan to lock-out employees at 00:01 Eastern Time on March 20, 2022 if the union leadership and the company are unable to come to a negotiated settlement or agree to binding arbitration. A full work stoppage is expected to result in a total shutdown of CP’s operations.
- A shutdown of operations at CP would prevent the flow of [ Redacted ] every day in Canada. Such an event would significantly disrupt cargo movements of automobiles, containerized cargo and bulk commodities such as agri-foods, coal, minerals, and crude oil.
- Western Canada would be the most impacted by a work stoppage, as the region accounts for [ Redacted ] CP handles most services at the Port of Vancouver [ Redacted ] mainly bulk cargo.
- Transport Canada estimates that the cost to the Canadian economy of a work stoppage could reach between $ [ Redacted ] daily.
- While we have heard that some shippers have begun to frontload their orders in advance any potential work stoppage, many shippers will not be able to shift from CP to CN. [ Redacted ]
- Where viable and economically feasible, some shippers have begun shifting to the truck mode, however, there are many challenges with this approach, given lack of capacity within the trucking mode.
- No impact on commuter or passenger rail services is anticipated based on conversations between TC and CP.