Canada's Labor Board Delays Start of Potential CN, CPKC Rail Strike

The review delays a possible strike by operating crews with CN and CPKC that could have begun as early as May 22 and could halt the shipment of $1 billion worth of goods per day in Canada, according to RailState, a company that monitors freight trends across the country.

Canadian Minister of Labor Seamus O'Regan Jr. announced Thursday on social media site X that he asked CIRB to "look into maintenance of activities agreements" between the union representing the workers and the two railroads, saying "serious concerns have been raised about potential impacts to the health and safety of Canadians" if a work stoppage occurs.

The CIRB plans to review whether any critical shipments must continue in the event of a strike or lockout, according to CIRB spokesman Jean-Daniel Tardif.

"It is unlikely a decision will come down by May 22" Tardif told The Canadian Press. "Written submissions alone will likely take longer."

On May 1, some 9,300 CN and CPKC rail workers voted to authorize a strike as soon as May 22 if they are unable to reach new agreements. The workers are negotiating for higher wages and better scheduling, among other benefits.

Teamsters Canada Rail Conference (TCRC), the union representing CN and CPKC workers, said the decision to delay the strike while CIRB reviews the agreements is "frustrating."

"The employers know what our membership thinks of their proposals, and your union will be there to move your demands forward" TCRC said in a letter to its members posted Saturday on its website. "This recent development is incredibly frustrating, and we believe undermines the entire process. The TCRC will challenge any result that impacts our charter rights, whether it be this dispute or any decision that may hinder future collective bargaining."

After CIRB announced it was reviewing the labor dispute between the railroads and workers, CPKC said, "our supply chains need stability, now more than ever. CPKC believes these negotiations need to be resolved in a timely manner to provide certainty for the Canadian economy and for North America's supply chains."

CN said it continues to seek a negotiated agreement with the union.

"CN strongly believes that the current uncertainty around a labor disruption must be resolved decidedly and as soon as possible for employees, customers, and Canadians who depend on rail to get everyday essential goods" CN said in a news release.

The negotiations between the union and railroads were scheduled to begin in Montreal on Monday.

Some carriers have already begun preparing contingency plans for a potential strike.

Maersk recently said it has been "working closely" with CN, CPKC and terminal operator DP World to minimize congestion on the Canadian west coast ports in the event of a strike.

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