On August 9, the Canada Industrial Relations Board (CIRB) released its ruling on the question of whether a work stoppage on Canadian railways would create a threat to public health and safety. If a threat had been found, it would have halted the potential for a labor strike or employer lock-out—which would bring Canadian rail operations to a standstill.
However, the CIRB found that a work stoppage would not create a threat, and therefore re-opened the door to potential labor action. This outcome was widely anticipated, with the review seen as a delay tactic, allowing time for Teamsters Canada and the rail lines to negotiate a contract.
Unfortunately, no progress on that negotiation has been made. With the CIRB ruling, a window has been opened for a strike or lock-out as of August 22, after a required cooling off period. Both Canadian Pacific Kansas City Southern Railway (CPKC) and Canadian National (CN) Rail have released notifications of a lock-out to begin at 12:01 AM on Thursday August 22.
To avert a rail shutdown, one of three things must happen—a contract must be negotiated and finalized, the lockout notices or action from CPKC & CN must be revoked, or the Canadian Government must take some kind of action.
CN and CPKC have already taken the first step in preparation for a shutdown, which is the refusal of Hazardous Material.
Mohawk Global will continue to monitor the situation and share any important updates. If you have questions about your specific shipments, reach out to your Mohawk Global representative.
By Chris Lindstrand, VP of International Transportation