Canadian Class I’s, TCRC Bargaining Update

(Photographs Courtesy of CN, left, and CPKC, right)

Separate negotiations with the Teamsters Canada Rail Conference (TCRC) have been under way at intervals for CN and Canadian Pacific Kansas City (CPKC), with the assistance of federal conciliators.

Updates: TCRC on June 7 reported that CN and CPKC have rejected its proposal “to stagger negotiations with both companies by two weeks,” which the union said “would avoid simultaneous work stoppages at CN and CPKC, significantly reducing the economic impacts from any disruptions to the supply chain from a strike or lock out.” CN on June 11 said the TCRC proposal “is not a way forward,” pointing out that “binding arbitration is the answer.” CN on June 4 reported making a formal offer to TCRC to enter into binding arbitration, but the union declined. Both Class I’s have reported that a work stoppage cannot occur until the Canada Industrial Relations Board (CIRB) issues its decision. While the CIRB does not have a set timeline, the railroads believe a work stoppage is unlikely before mid-to-late July. CPKC on June 14 reported filing its reply submission to the CIRB and requesting an “order that a strike or lockout cannot occur until 30 days after the date on which the CIRB issues its decision to allow stakeholders to plan for any potential work stoppage.” Read on for more bargaining details (in chronological order).

CN and CPKC on Feb. 16 filed separate Notices of Dispute in their negotiations with TCRC. The notices asked the Federal Mediation and Conciliation Service to appoint a government mediator to help them reach negotiated collective agreements. The union—which on the same day said the move “has taken us by surprise”—reported Feb. 19 that the railroads “are not serious about negotiating and avoiding a work stoppage” and “aim to eliminate all safety-critical rest provisions from our collective agreements.”

TCRC represents approximately 6,000 conductors, conductor trainees, yard coordinators and locomotive engineers across CN’s network in Canada; and roughly 3,200 locomotive engineers, conductors, and train and yard workers at CPKC in Canada. Also under negotiation at CPKC is a contract with the TCRC-Rail Canada Traffic Controllers (RCTC) division, which represents about 80 of the railroad’s rail traffic controllers in Canada.

While the three TCRC collective agreements expired Dec. 31, 2023, they remain in effect under Canadian labor law until the parties reach agreements. Once a Notice of Dispute is filed, a Federal Conciliation Officer must be appointed within 15 days (see collective agreement bargaining process chart below). The Notice also starts the legal process toward a possible strike or lockout. 

The Federal Minister of Labor appointed conciliators on March 1, 2024, to separately help CPKC and CN and the union reach new negotiated agreements. CN said at that time, “with recent regulatory changes challenging crew availability, along with an evolving workforce coming in, the terms of that contract are no longer meeting the needs of our customers, and many of our employees”; it noted that it “remains committed to achieving a settlement that is good for our employees and customers—one that enhances our team members’ health and safety, work experience, work-life balance and addresses employee availability.” CPKC said at that time it “has been, and remains, committed to the collective bargaining process,” adding that its “two offers presented to the TCRC leadership fully comply with new regulatory requirements in Canada for rest and in no way compromise safety.”

TCRC on May 1 announced that the close to 10,000 workers at CN and CPKC voted to authorize a strike unless the parties reach an agreement; that could have taken effect as early as May 22.

On May 9, the Minister of Labor requested clarity from the Canadian Industrial Relations Board (CIRB) “on whether or not any services are essential and therefore must be maintained during a labor disruption,” according to CN. “As a result of that request, there can be no strike or lockout before the CIRB issues a decision.” The “timing for the CIRB decision is unknown,” CPKC reported May 10. “Pursuant to the Canada Labor Code, the parties are currently in a mandatory 21-day cooling off period, which would otherwise expire at 23:59 ET on May 21.”

CPKC on May 16 issued the following update:

“CPKC and the Teamsters Canada Rail Conference (TCRC) leadership will resume meeting on May 17, 2024, with the assistance of federal mediators in an effort to achieve new collective agreements for our Train and Engine (T&E) and Rail Traffic Controller (RCTC) employees.

“As we have said since these negotiations began, CPKC is firmly committed to the collective bargaining process and our objective remains to negotiate renewed agreements that are in the best interests of our employees, their families, our customers, the Canadian economy and North America’s supply chains.

“We recognize that the Federal Minister of Labor’s referral to the Canada Industrial Relations Board (CIRB) has created uncertainty regarding the timing of a potential work stoppage and corresponding interruption of rail service on our Canadian network. While it remains unclear how long it will take for the CIRB to issue a decision, this is what we know today:

• “The CIRB has requested submissions from CPKC and the TCRC as well as other interested stakeholders by May 21, 2024. The parties will have until May 31, 2024, to file replies.
• “A legal strike or lockout cannot occur until the CIRB renders a decision. Notice (72 hours) pursuant to the Canada Labor Code is required before any legal strike or lockout could begin.
• “Recognizing our supply chains require certainty, now more than ever, CPKC has proposed to the TCRC that both parties agree on the services that should be maintained in the event of a strike or lockout. We believe this would eliminate the need for the CIRB referral process and bring much needed clarity regarding the timing of any potential strike or lockout.
• “If no maintenance of services agreement is reached, based on precedent, it is unlikely the parties will be in a position to initiate a legal strike or lockout within the next 60 days [or before July 15].
• “On Wednesday [May 15], CPKC voluntarily offered to enter binding arbitration to avoid a work stoppage, however, the TCRC declined. 

“We are committed to keeping all stakeholders updated as this process unfolds and will provide updates at least every two weeks or more frequently as necessary.”

CN on May 16 released this update:

“In an attempt to avoid a work stoppage and end the unpredictability for Canada’s supply chains, CN tabled a new offer to the Teamsters Canada Rail Conference (TCRC).

“The new offer remains fully compliant with the Federal Government’s Duty and Rest Period Rules (DRPR), which define the requirements related to the hours of work and rest periods for employees who are in positions designated critical to safe railway operations.

“Since the beginning of bargaining in 2023, CN’s proposals have focused on modernizing the collective agreement to enhance employee safety, introducing predictable scheduling with planned consecutive days off, better work-life balance, and increased financial compensation.

“As the Union would not negotiate these enhancements for a more modern agreement, CN has now tabled a revised offer within the existing parameters of the current collective agreement. This revised offer eliminates the hourly rate and scheduling proposal and continues to comply with the Duty Rest Period Rules.”

CN outlined the new offer’s details:

“CN will schedule days off and would pay a higher rate for any work over 10 hours in a shift with a maximum of 12 hours per shift for employees in Western Canada, which is compliant with the maximum on-duty period under the Duty and Rest Period Rules. All employees will keep their existing 10 paid leave days, their existing 10 paid medical leave days, their existing vacation allotment, their existing statutory holidays, and their rest at their home terminal. Other changes include wage increases of 3% in 2024 and 2.5% in 2025 and other monetary improvements.

“Additionally, employees must comply with the Duty and Rest Period Rules by self-assessing their fitness for duty through a scientific fatigue evaluation prior to any shift, which ensures that employees evaluate their fitness for duty prior to reporting for work. Further, under the Duty and Rest Period Rules, employees cannot work more than 60 hours per 7-day period, or more than 192 hours per 28-day period. Employees must also receive a ‘reset break’ of at least two consecutive nights rest undisturbed every 7 days.”

According to CN, “[b]y combining DRPR and existing rest provisions in collective agreements, currently conductors and locomotive engineers work approximately 160 days a year.” In 2023, the railroad added, “the average conductor earned approximately $121,000” and “the average locomotive engineer earned approximately $150,000.”

CPKC on May 22 released the following statement on bargaining:

“CPKC and the Teamsters Canada Rail Conference (TCRC) leadership met again between May 15 and 21, 2024, with the assistance of federal mediators in an effort to achieve renewed collective agreements for our Train and Engine (T&E) and Rail Traffic Controller (RCTC) employees. Regrettably, and despite our best efforts, no progress was made. Additional bargaining dates have not been scheduled at this time.

“Although yesterday [May 21, 2024] marked the expiration of the mandatory 21-day ‘cooling off’ period under the Canada Labour Code, the Federal Minister of Labour’s referral to the Canada Industrial Relations Board (CIRB) regarding the maintenance of activities means that a legal strike or lockout cannot occur until the CIRB renders a decision. We recognize that this referral has created challenging uncertainty for all stakeholders regarding the timing of a potential work stoppage on our Canadian rail network. While it remains unclear how long it will take for the CIRB to issue a decision, based on precedent, it is unlikely the parties will be in a position to initiate a legal strike or lockout before mid-July or later.

“Submissions from CPKC, the TCRC and other stakeholders were due yesterday [May 21, 2024]. We understand the CIRB has received a significant number of submissions that it will need to review and consider. The CIRB process is moving forward. A case management conference is now scheduled for early next week. The CIRB has given CPKC and the TCRC until May 31, 2024, to file replies.

“CPKC remains firmly committed to negotiating renewed agreements to avoid a work stoppage that would be detrimental to the interests of all stakeholders, including our employees, their families, our customers and supply chains across North America and beyond. Unfortunately, it is clear the TCRC leadership does not share that commitment. Instead, the TCRC appears determined to go down the path of a reckless, economically damaging strike that can and should be avoided.

“CPKC has done everything it can to restore certainty and predictability for all our employees, their families and our supply chains. We have proposed to the TCRC that we both agree to resolve this labour dispute through binding arbitration. Our offer was refused. This uncertainty could be resolved today if the TCRC would simply agree to binding arbitration.

“We have asked the TCRC the following:

• “Why can’t we avoid the unnecessary disruption and harm a work stoppage would cause to millions of Canadians and the thousands of workers in countless industries across global supply chains, and the damage to Canada’s reputation as a reliable trading partner? This course of action is unquestionably harmful to the interests of all parties and stakeholders, and Canada’s national interest.

• “Why choose the needless path of a work stoppage when we all know that the ultimate outcome is binding arbitration? Let’s agree today to resolve this matter through binding arbitration.

“CPKC has made two distinct offers to the TCRC, both of which provide significant benefits for our employees and fully comply with new regulatory requirements for rest. They do not in any way compromise safety. To say or suggest otherwise is patently false.

“The TCRC is aware of the offers and agreements made with other unions across the CPKC network, including other hourly agreements, and must know that the proposals it has put forth as part of these negotiations are unreasonable and unachievable.

“We remain committed to keeping all stakeholders updated as this process unfolds and will continue to provide regular updates.”

CPKC on May 29 released this statement:

“This week, both CPKC and the Teamsters Canada Rail Conference (TCRC) participated in a case management conference held by the Canada Industrial Relations Board (CIRB), to discuss the Minister of Labour’s referral regarding the maintenance of activities during a work stoppage.

“The CIRB has extended the deadline for reply submissions from May 31, 2024 to June 14, 2024, and also directed the parties to provide comments on certain identified themes raised in the submissions filed by various interested stakeholders and affected organizations. 

“While it remains unclear how long it will take for the CIRB to issue a decision following the extended comment submission deadline, based on precedent, it is unlikely the parties will be in a position to initiate a legal strike or lockout before mid-July or later.

“The Federal Minister of Labour’s referral to the CIRB means that a legal strike or lockout cannot occur until the CIRB renders a decision. We recognize that this referral has created challenging uncertainty for all stakeholders regarding the timing of a potential work stoppage on our Canadian rail network.

“CPKC continues to believe in the need to restore certainty and predictability for all our employees, their families, our customers and North American supply chains. Our standing offer to the TCRC leadership is that we both agree to resolve this labour dispute through binding arbitration so that we can avoid a work stoppage that is detrimental to the interests of all stakeholders.

“We will continue providing regular updates to keep all stakeholders informed as this process unfolds.”

CN on June 5 issued the following bargaining update:

“Negotiations with the TCRC continued on June 4, 2024, with the support of federal conciliators. In an attempt to find a resolution that protects the North American economy and not impact its supply chains, CN made a formal offer to the TCRC to enter into binding arbitration. Binding arbitration would mean that the union and CN agree that a mutually agreed upon independent arbitrator will resolve the terms of the new collective agreement. The TCRC has declined CN’s proposal for binding arbitration. …

“As previously communicated, CN tabled a revised offer to the TCRC in May that focuses on reaching a mutually beneficial negotiated agreement with the TCRC that avoids a work stoppage and protects North America’s supply chains, while maintaining a safe work environment for our employees. Details of this offer are in th[is] table. … All offers made to the TCRC align with the latest government regulations and Duty and Rest Period Rules (DRPR).”

CN also provided an update on the Canada Industrial Relations Board (CIRB) process:

“Last week, CN and other parties met with the CIRB to discuss the Minister of Labour’s request for clarity on the continuation of activities during a work stoppage.

“The parties had until May 31, 2024 to reply to submissions filed earlier on the issue. The CIRB has now extended this deadline to June 14, 2024, and has asked that specific themes identified in the submissions filed by stakeholders be addressed in the replies.

“A work stoppage cannot occur until the CIRB issues its decision. While the CIRB does not have a set timeline, we believe a work stoppage is unlikely before the mid to late July timeframe. The CIRB’s request for clarity does not impact CN and the TCRC’s ability to continue bargaining.”

TCRC Update, June 7:

TCRC on June 7 reported that CN and CPKC have rejected its proposal to stagger negotiations with both companies by two weeks. The move, it said, “would avoid simultaneous work stoppages at CN and CPKC, significantly reducing the economic impacts from any disruptions to the supply chain from a strike or lock out.“

“Staggering the negotiations is a sensible solution that would minimize disruptions and allow all parties to address their concerns in a more structured and productive manner,” said Paul Boucher, President, TCRC. “A work stoppage has never ever been our end goal. Our members at both carriers simply want a fair and equitable collective agreement—one that does not compromise their quality of life or their safety.”

CN’s June 11 Update, Response to TCRC ‘Staggered Negotiations’ Proposal:

“CN has been in negotiation with the TCRC since November 2023 to reach an agreement that is good for both parties,” the Class I reported June 11. “Unfortunately, we are no closer to a deal. The uncertainty around the timing of a resolution and the prospect of a labour disruption are hurting CN, our employees, our customers, and the Canadian economy. The Minister of Labour’s request to the Canadian Industrial Relations Board (CIRB) on the issue of essential services is adding to this uncertainty.

“The TCRC’s proposal for staggered negotiations is not a way forward. It does not resolve the uncertainty. It only prolongs the risk of a labour disruption over an extended period of time. It is like suffering ‘death by a thousand cuts’ as we say. So, how can we reach a settlement faster, while respecting both parties’ right to advance their position and avoiding negative impacts on CN railroaders, customers, and the economy? We think binding arbitration is the answer.”

CN explained that binding arbitration “is a process where both parties empower a mutually agreed upon independent arbitrator to resolve the impasse in their negotiations” and “preserves both parties’ ability to advocate for outstanding issues and perspectives.” According to the railroad, the “neutral arbitrator then sorts through the arguments and renders a decision. In simple terms, the arbitrator would determine the terms of a settlement between CN and the TCRC.” Binding arbitration, it said, “is routinely used in resolving negotiations disputes and the arbitrator’s decision would be final. It is not a way to force a position unto a party. Binding arbitration allows both parties to advocate for their position, just like they would in bargaining. In fact, the arbitrator’s mandate is to ‘replicate’ the outcome that would have been reached in bargaining.”

Why does CN believe binding arbitration is the answer? It provided these reasons:

• “The parties have been negotiating since November 2023 and we are no closer to a deal.
• “CN has now made multiple varied offers to the union. The union has indicated that they will not present any of those offers to employees.
• “The parties are at an impasse and further meetings are unlikely to unlock the issues.
• “The CIRB process is ongoing and no timelines are available at this time.
• “Our proposal is to enter into binding arbitration now, before any further incremental harm is done to customers and the economy, and before any wages are lost by employees.”

CPKC Update, June 14:

“Today, CPKC filed its reply submission to the Canada Industrial Relations Board (CIRB) pursuant to the deadline established by the CIRB as it considers the Federal Minister of Labour’s referral regarding maintenance of activities during a potential railway strike or lockout.

“While it remains unclear how long it will take for the CIRB to issue a decision, based on precedent, it is unlikely the parties will be in a position to initiate a legal strike or lockout before mid-July or later. In any event, a legal strike or lockout cannot occur until at least 72 hours after the CIRB renders a decision.

“Our customers, employees, and stakeholders want predictability and certainty restored. Our supply chains have been through so much disruption in recent years and are now having to plan for a possible railway work stoppage that could come at an unknown time and on very short notice. This represents a major challenge for Canada’s supply chains, which is causing avoidable damage to Canada’s international trade reputation. CPKC has requested the CIRB order that a strike or lockout cannot occur until 30 days after the date on which the CIRB issues its decision to allow stakeholders to plan for any potential work stoppage.

“In response to the Ministerial referral, the TCRC proposed that the bargaining timelines of both CPKC and CN be staggered by two weeks to allow for further negotiation and potential staggered work stoppages. CPKC was prepared to consider such a proposal provided there was a mechanism to resolve any dispute if negotiations failed. The TCRC refused and appear fully committed to strike action.

“CPKC’s offer to resolve any labour dispute through binding interest arbitration in order to avoid a work stoppage remains on the table. CPKC’s previous offers to the TCRC, both of which provide significant benefits to our employees and fully comply with new regulatory requirements for rest, also remain on the table. Neither offer compromises safety and to suggest otherwise is patently false.

“We will continue providing regular updates to keep all stakeholders informed.”