Liberals not intervening in rail strike that could grind economy to a halt

OTTAWA – The Liberal government wants workers and railroad companies to work out their dispute at the bargaining table, as the clock ticks closer to an economically crippling work stoppage.

CN Rail and Canadian Pacific Kansas City rail, two rail companies with networks spanning the U.S. and Canada, have both issued lockout notices to workers represented by the Teamsters Canada Rail Conference. The Teamsters have filed a strike notice against CPKC as well.

Labour Minister Steven MacKinnon posted a statement on the social media site X Monday, urging both parties to resolve the issue at the negotiating table.

“These collective bargaining negotiations belong to CN Rail, CPKC and TCRC workers alone, but their effects will be borne by all Canadians. The parties must do the hard work necessary to reach agreements at the bargaining table and prevent a full work stoppage,” he said. “Canadians expect the parties’ efforts to be equal to the trust conferred on them.”

MacKinnon rejected a request last week from CN to impose binding arbitration.

A government source, who declined to be identified because they are not authorized to speak publicly, said MacKinnon’s rejection of binding arbitration could be reversed if no deal is reached.

They stressed all options would be on the table if the work stoppage does occur, but said the government believes negotiations will lead to a better settlement. Another government source said the two sides have more work to do at the negotiating table and a deal is possible.

Both rail companies have stopped accepting some types of freight in the lead up to a potential stoppage, including chlorine for drinking water and other potentially hazardous goods.

When it announced the lockout, CPKC said it had no choice, because the union was refusing to enter binding arbitration to end the dispute.

“CPKC is acting to protect Canada’s supply chains, and all those who depend on them, from the more widespread disruption that would be created should a work stoppage occur,” the company wrote.

The union has blamed the railways and suggested the companies are not willing to negotiate.

“We continue to work towards an agreement which aligns with demands from our members and have made every effort to meet with the company. We frankly have an unwilling and uninterested partner in negotiations,” the Teamsters said in an update to their members.

NDP Leader Jagmeet Singh said Monday if the government does consider intervening he and his party will oppose it.

“I want to send a clear message to Justin Trudeau and the Liberals. We will oppose any attempt of the federal government to intervene on behalf of the employer, against the workers in what should be a negotiated agreement,” he said.

Singh has been supporting the Liberals through a confidence and supply agreement since 2022. He did not directly answer a question on whether his party would leave the agreement over the issue, but said he blames CN and CPKC for the potential work stoppage.

“We’re only in this position because the company, both companies, have failed to negotiate fairly with workers. In fact, the companies have not shown good faith. If they negotiated in good faith, we would have a fair deal that gives good wages and safety for the workers,” he said.

The National Post reached out to Conservative Leader Pierre Poilievre’s office, but did not receive a response before press time.

More than $1 billion in commerce moves through Canada’s railways everyday, including grain, minerals and manufactured goods.

Goldy Hyder, President and CEO of the Business Council of Canada, urged the government last week to get more directly involved.

“Rail is the backbone of the Canadian economy. Businesses of all sizes and in all sectors rely on rail to deliver goods that are essential for their operations and the employment of millions of Canadians,” he said. “In addition to the overall harm to the economy and jobs, a national work stoppage would also drive up prices for essential goods at a time when Canadians are facing affordability challenges.”

The Canadian Federation of Independent Business called on the government to make railworkers and also ports essential services. The group’s vice-president, Jasmin Guenette, said the possible stoppage would hurt businesses that can’t afford it.

“Any disruptions to railway operations could be devastating for small businesses, their employees and communities. Many small businesses rely on rail services to send and receive goods, products and essential materials,” he said. “The longer the work stoppage goes on, the costlier it becomes for small firms who may lose sales and contracts if goods are not delivered or received on time.”

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