TORONTO (AP) — Canada’s two major freight railways could halt their trains on Thursday if they do not agree to a contract extension The union represents train drivers, conductors and dispatchers. The Canadian government is closely monitoring the situation and may intervene to prevent widespread damage to the economy.
Both Canadian National and CPKC have been gradually phasing out their operations since last week, ahead of their contract expiration on Thursday at 12:01 a.m. Eastern Time. If this issue is not resolved, all traffic will be halted beforehand. Dangerous chemicals and perishable goods were the first to be suspended so they don’t get stuck somewhere on the tracks.
As labor negotiations in Canada entered the home stretch, CSX, one of the largest U.S. railroads, broke with the U.S. freight rail industry’s longstanding practice of bargaining jointly with unions for years. CSX reached a settlement with several of its 13 unions, covering 25% of its workforce, before nationwide collective bargaining begins later this year.
The new five-year contracts, if ratified, will provide for a 17.5% wage increase, better benefits and more vacation time. Unions that have signed contracts with CSX include a branch of the SMART-TD union, which represents conductors in one region, the Transportation Communications Union, the Brotherhood of Railway Carmen and the Transport Workers Union. TCU President Artie Maratea said he was proud his union reached a contract “without years of unnecessary delays and delaying tactics.”
Canadian Prime Minister Justin Trudeau was reluctant to force both sides into arbitration because he did not want to anger the Teamsters Canada Rail Conference and other unions, but he urged both sides to reach an agreement on Wednesday because enormous economic damage that would follow a complete shutdown.
“It is in the best interest of both sides to continue the hard work at the negotiating table,” Trudeau told reporters in Gatineau, Quebec. “Millions of Canadians, workers, farmers, businesses across the country are counting on both sides to do their work and come to a solution.”
Numerous business associations are urging Trudeau to act.
Trudeau said the labour minister met with both sides at the Canadian National Talks in Montreal on Tuesday and will be present at the CPKC talks in Calgary, Alberta. Talks at both rail companies continued on Wednesday.
Negotiations have reached a deadlock over the allocation of railway employees and regulations to prevent fatigue and ensure sufficient rest periods for train staff. Both railway companies had proposed switching from the existing system, in which employees are paid by the number of kilometres travelled, to an hourly wage system, which they believe would make it easier to guarantee planned leisure time.
The railroads said their collective bargaining agreements included pay increases consistent with recent industry deals. Train drivers at Canadian National earn about $150,000 a year, while conductors earn $120,000. CPKC says the wages are comparable.
Almost 10,000 employees are affected by these contracts.
Similar Quality of life concerns about demanding working hours and the lack of paid sick days almost led to a US rail strike two years ago to Congress and President Joe Biden intervened and forced the unions to agree to an agreement.
Countless companies that rely on rail for the delivery of their raw materials and finished products would suffer if the trains were to actually stop. All rail traffic in Canada and cross-border traffic with the United States would come to a halt, although the American and Mexican operations of CN and CPKC would continue.
If there are no rail connections, manufacturing companies may have to slow down or even stop production altogether. Ports and grain elevators will quickly become clogged with waiting shipments. And if the conflict drags on for a few more weeks, water treatment plants across Canada may have to go without new supplies of chlorine.
“If the railway does not pick up the goods arriving by ship, the terminals will soon be full. And from that point on, no more ships will be able to dock at the terminal,” says Victor Pang, chief financial officer of the Vancouver Fraser Port Authority.
He referred to the 13-day strike by 7,400 dockworkers in British Columbia last summer, which manufacturers said blocked the flow of goods worth 500 million Canadian dollars ($368 million) a day.
Some companies would no doubt resort to trucking to transport some of their products, but there is no way to offset the volume that rail delivers. It would take about 300 trucks to transport everything that a single train can carry.
In addition to the potential economic impact, more than 32,000 commuters in Toronto, Montreal and Vancouver could be stranded because these trains run on the CPKC railway tracks.
In the United States, all major railroads have made efforts to address workers’ concerns, and CSX has been first collective agreement for paid sick leaveThe Jacksonville, Florida-based railroad also relaxed its strict attendance policy and announced new efforts to work with its unions.
The current national collective bargaining agreement for U.S. railroad workers expires at the end of this year. This is the first time TCU members have a new collective bargaining agreement in place before the old one expires. The agreement includes the first improvements to vacation policies in more than 50 years.
CSX has offered similar terms to all of its unions, so if they agree, more deals could be reached in the coming days.
“CSX and our union partners understand that our employees do not want to wait several years for their next raise,” said CEO Joe Hinrichs.
___
Funk reported from Omaha, Nebraska.
