Labour minister to meet with rail companies, union as deadline to avoid massive shutdown looms

Labour Minister Steve MacKinnon will meet with representatives of Canada's two main rail companies and unions as the deadline to avoid an unprecedented service shutdown approaches.

Both the Canadian National Railway and the Canadian Pacific Kansas City remain at loggerheads with the Teamsters Canada Rail Conference union. The union has been demanding better wages and benefits — including better crew scheduling —  for workers.

On Sunday, CN formally notified the union that it would start locking out union workers early on Thursday. CPKC already has told the Teamsters it will start locking out members early on Thursday. Separately, the union also issued a 72-hour strike notice to CPKC late on Sunday.

Without a last-minute agreement or binding arbitration, the bulk of Canada's freight rail traffic could grind to a halt this week.

"Minister MacKinnon will be in Montreal tomorrow and Calgary on Wednesday to meet with the parties and federal mediators and urge CN Rail, CPKC and Teamsters to fulfil their responsibility to Canadians, reach agreements at the bargaining table, and prevent a full work stoppage," a statement from MacKinnon's office said.

Earlier Monday, NDP Leader Jagmeet Singh said his party would oppose any government intervention in the ongoing labour dispute.

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NDP Leader Jagmeet Singh says the 'only' appropriate federal intervention into an ongoing contract dispute between unions and two major railways would be to force CN Rail and CPKC to negotiate fairly with workers. Both rail operators announced they would start locking out union workers early on Thursday.

"I want to send a clear message to Justin Trudeau and the Liberals. We will oppose any attempt of the federal government to intervene on behalf of the employer against the workers in which should be a negotiated agreement between workers and the employer for good wages and safe working conditions," he told reporters in Halifax.

"For too long we have seen Liberals and Conservatives interfere in these types of labour disputes to the advantage of the employer, to the detriment of the worker. That is wrong and we will oppose that."

MacKinnon previously seemed resistant to interfering. Last week he rejected a request from CN for binding arbitration, and instead urged the parties to hammer it out at the negotiating table.

CN Rail said the union has not "engaged meaningfully," while the union says the rail companies' proposals would jeopardize rail safety.

Canadians will feel effects, minister says

In a statement issued earlier on Monday, MacKinnon again urged the rail companies and the union — which represents a combined 9,300 workers at the two railways — to reach a deal.

"These collective bargaining negotiations belong to CN Rail, CPKC and TCRC workers alone but their effects will be borne by all Canadians," he said.

"The parties must do the hard work necessary to reach agreements at the bargaining table and prevent a full work stoppage. Canadians expect the parties' efforts to be equal to the trust conferred on them."

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Daniel Peretz, the president of NexGen Polymers in London, Ont., discusses the ongoing labour dispute between Canada's two main rail companies and unions as well as the potential impact on businesses and clients should a service shutdown take place.

Kristen Hillman, Canada's ambassador to the U.S., told CBC News Network's Power & Politics that American politicians have been asking her about the possibility of a rail shutdown in Canada.

"I have had members of Congress, I've had members of [U.S President Joe Biden's] administration reach out to me and ask for details about what's going on," Hillman told guest host Catherine Cullen.

"I've been telling them … we feel the best option is for the employer and the employees to work this out themselves. But I've also made it clear that we are very seized with this challenge and under no illusions as to how disruptive and difficult it would be should there be a work stoppage."

The Canadian Federation of Independent Business says the lockout could be devastating for small businesses that depend on rail service to send and receive goods, products and essential materials.

A stoppage of this size would be without precedent. Contract talks between the union and the companies usually take place a year apart, but in 2022 CN requested a year-long extension, meaning both companies' labour agreements expired at the end of 2023.

Negotiations have been ongoing since.