Canadian Rail Strike - Alert

Importers are preparing for potential disruptions in the supply chain this month. Canadian rail workers, affiliated with the Teamsters Canada Rail Conference (TCRC), have overwhelmingly voted to reauthorize strike action and plan to strike at the earliest opportunity.

Over the weekend, the union announced that 10,000 workers at CN and CPKC had voted, with 98.6% in favor of strike authorization, valid for 60 days. Initially planned for May 22, strike action was paused following a government request to the Canada Industrial Relations Board (CIRB) to determine if rail services are essential and thus essential to public health.

The delay at the CIRB prompted the union to ask members to reauthorize strike action. If the CIRB rules that rail services are not essential, a strike could commence with just 72 hours notice. Both rail operators and the union argue in submissions to the board that rail services are not essential.

Despite ongoing bargaining, there has been no agreement between the parties, with significant disagreement over crew scheduling, work hours, and fatigue management. Negotiations turned contentious after five months of unsuccessful talks following the expiration of the previous agreement in December.

According to the TCRC, "Workers are on the defensive in these negotiations, with both companies demanding a wide range of concessions." The union accuses CN and CPKC of trying to increase productivity from train crews amid labor shortages, which they argue compromises safety and disrupts families.

Suspension of intermodal cargo services at Canadian container terminals could worsen port congestion nationwide.

Ports likely affected in the event of a rail strike include Vancouver, Prince Rupert, Montreal, and Halifax. We would see additional impacts on US west coast ports in terms of congestion, availability and increased costs as a result of higher demand.