Canada's Liberal Government Has Asked the Federal Labor Authority to Examine Whether the Two Largest Railway Companies in the Country Must Continue to Transport Certain Goods in the Event of a Potential Strike. This Review Could Delay an Imminent Strike at Canadian National Railway (CN) and Canada Pacific Kansas City (CPKC).
The Labor Minister Seamus O'Regan submitted the motion late on Thursday. "Serious concerns have been raised about the potential impacts on the health and safety of Canadians due to a simultaneous strike at both railway companies," said O'Regan on social media platform X, formerly known as Twitter. "It is our duty to review this."
Canadian labor laws allow the government to ask the Canada Industrial Relations Board (CIRB) whether certain services must be maintained during a strike "to prevent an immediate and serious danger to the safety or health of the public."
A Canadian official stated that the planned railroad strike might be delayed if the CIRB does not make a decision by May 22. O'Regan has heard concerns from various interest groups regarding the impact of a strike and the delivery of certain goods.
The translation of the heading to English is:
"An example is the transport of propane, which is used in rural communities as a source of heating and by farmers for drying oilseeds, sunflowers, nuts, vegetables, or fruit to increase yields and reduce storage losses."
A spokesperson for Teamsters Canada stated that the union leadership is reviewing the minister's request. "Naturally, we will comply with any order from the Canada Industrial Relations Board should safety-critical needs be identified," said the spokesperson.
A spokesperson for CPKC, based in Calgary, Alberta, said it was unclear when the CIRB would make a decision. He added that the railroad and the union will meet with federal labor mediators next week.
"CPKC believes that these negotiations must be resolved promptly to ensure security for the Canadian economy and the North American supply chains," said the spokesperson.
A spokesperson for Canadian National said that the Montreal-based railway believes "the current uncertainty surrounding a work stoppage must be resolved decisively and as quickly as possible” for Canadians who rely on rail for essential goods. A representative of the CIRB did not respond to a request for comment.
Economic Associations Warn That a Strike at CN and CPKC Would Cause Major Disruptions in the Supply Chain Network. "It would be very, very bad for manufacturers," said Dennis Darby, head of Canadian Manufacturers and Exporters, "because so many of our goods, parts, and ingredients are transported by rail. We don't have much extra capacity in the transportation system in Canada."
Pedro Farah, Chief Financial Officer at Canada-based Nutrien, the world's largest fertilizer producer by capacity, said the company is making contingency plans in the event of a potential rail strike. "But if there is a work stoppage, we could see impacts on sales volumes in the second quarter," he said during an earnings call this week.
Last week, O'Regan said the government had no intention of enacting back-to-work legislation to end a railway strike should it occur later this month. "I am serious when I say that the best agreements are made at the negotiating table. They must be made at the negotiating table," he said.
O'Regan did not introduce back-to-work legislation during a two-week strike in Canada's Pacific ports last summer. Authorities estimate that this strike reduced Canada's gross domestic product by almost 1 billion Canadian dollars, or about 730 million US dollars.
