Potential strike hangs over rail industry as labour minister, shippers, union meet Monday

Labour Minister Steven MacKinnon met with representatives of Canada's two biggest railways and the union representing many of their workers on Monday to try to build momentum toward a deal that could stave off a devastating potential strike later this month.

The recently sworn-in labour minister called representatives of Canadian National Railway, Canadian Pacific Kansas City (CPKC) and Teamsters Canada, which represents about 9,300 workers at the two companies, to a meeting in Gatineau, Que., on Monday.

"Since I've been appointed as minister of labour, I've not been satisfied that parties share the urgency that Canadians feel around these disputes, and obviously we want to see a renewed commitment to bargaining," MacKinnon told reporters ahead of the meeting.

"I don't need to remind anyone that there's economic risk," he said. "I think any Canadian understands how integral these two companies and their workers are to the functioning of the Canadian economy.

MacKinnon said he would remind parties during the gathering that they have a duty to each other, but also to Canadians. In French, he characterized the negotiations as "unacceptably slow."

Following the meeting, MacKinnon said in a statement that parties had agreed to restart negotiations on Wednesday, accompanied by federal mediators.

Separate from the negotiations on a collective agreement, the Canada Industrial Relations Board is examining whether any critical shipments must continue in the event of job action, with any would-be work stoppage on pause until a ruling is made. A decision on whether a strike would jeopardize Canadians' health and safety is expected by Friday.

The companies and Teamsters Canada had agreed that no minimum level of work would continue during a strike or lockout, MacKinnon said, but former labour minister Seamus O'Regan had referred that question to the board.

'A strike is never inevitable'

Observers say the possibility of a strike will likely remain on the table after the board decision, as players in industries ranging from agriculture to big-box retail worry about the fallout.

John Corey, president of the Freight Management Association of Canada, whose members include Canadian Tire and Home Depot, said a work stoppage would virtually shut down commodities traffic, with some shippers already rerouting ahead of the potential disruption.

Mariam Abou-Dib, executive director of Teamsters Canada, said before the meeting she was pleased MacKinnon had called the parties together and that she hoped the rail companies would work toward a deal.

"A strike is never inevitable," she said. "For us, we continue to hope that a negotiated agreement will be the way that we end up solving this.

Abou-Dib said she didn't believe the companies were negotiating in earnest. "It's been a very difficult round," she said, adding that the companies had not made any concessions during the negotiations.

In a statement following the meeting, the union emphasized that the negotiations were focused on company demands.

Speaking to financial analysts last week, CPKC president and CEO Keith Creel said a work stoppage was "most probable."

"We're far apart. I'm just being transparent and honest. It's going to be a challenge. We've offered to enter into binding arbitration given we understand the potential damage to the Canadian economy," he said.

"A damaging work stoppage would be avoided if the [union] leadership would negotiate an agreement in good faith or agree to binding arbitration. This would be in the best interests of all stakeholders," the company said in a statement in late July.

In a statement to Radio-Canada on Monday afternoon, CN said it appreciated the government's presence at the meeting on Monday and that it looked forward to continuing negotiations with Teamsters Canada on Wednesday.

"Since the beginning of the negotiations, our goal has always been and continues to be to negotiate in good faith with [the union] to reach a mutually beneficial agreement that maintains safety and stability for our team, our customers, and North American supply chains," the company said in July.