Canada labor tribunal rules on rail strike, orders 13-day cooling-off period

TORONTO (ICIS)–The Canada Industrial Relations Board (CIRB) on Friday ruled that no rail activities need to be maintained in case of a strike or lockout at rail carriers Canadian National (CN) and Canadian Pacific Kansas City (CPKC).

However, the quasi-judicial tribunal ordered a 13-day cooling-off period before a legal rail strike or lockout can begin.

The CIRB’s long-awaited ruling does not remove the rail strike threat that has been looming over Canada’s energy, chemicals and other industries for months.

A strike by the more than 9,000 CN and CPKC unionized conductors, train operators and engineers could now start towards the end of the month if collective bargaining fails.

The railroads and labor union Teamsters Canada Rail Conference (TCRC) resumed negotiations on Wednesday, 7 August.

Federal labor minister Steve MacKinnon on Friday urged the parties to continue negotiating. MacKinnon became labor minister last month after his predecessor resigned suddenly.

The former labor minister, Seamus O’Regan, in May referred the industrial dispute to the CIRB for a decision about a strike’s impacts on public safety and health after the rail workers voted for a strike as early as 22 May.

The referral suspended the workers’ right to strike because under law a legal strike or lockout could not occur until the board made its decision.

The ongoing uncertainties around rail disruptions have affected Canadian chemical, fertilizer and other manufacturers, as they need to make preparations.

In recent earnings calls, midstream energy firms Pembina and Keyera, as well as fertilizer major Nutrien and others raised the looming rail strike as a concern, and CN reduced its 2024 earnings guidance, citing the impacts of the labor uncertainty.

Canadian chemical producers rely on rail to ship more than 70% of their products, with some exclusively using rail, while in the fertilizer industry about 75% of all fertilizers produced and used in Canada is moved by rail.

Thumbnail photo source: CN