Uncertainty Persists as Canadian Rail Strike Looms Without Signed Contracts - Sobel Network Shipping Co., Inc.

Uncertainty Persists as Canadian Rail Strike Looms Without Signed Contracts

The Canadian rail industry faces ongoing uncertainty as the threat of a strike by Teamsters Canada Rail Conference (TCRC) members looms until new labor contracts are finalized. The National Customs Brokers & Forwarders Association of America (NCBFAA) Transportation Committee is urging its members to remain vigilant as negotiations continue between Canada’s two Class 1 railroads—Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC)—and the TCRC.

On Friday afternoon, TCRC union leaders formally challenged the Canadian government’s August 22 arbitration order, which had temporarily halted a strike at CN and CPKC. They specifically informed CN that if a new contract is not reached by 10 a.m. ET on Monday, August 26, the union’s 6,500 workers at the railroad will resume their strike action.

The situation reached a critical point on August 22, when the freight rail networks of CN and CPKC were brought to a standstill at 12:01 a.m. ET, as negotiations between the railroads and the TCRC stalled. The TCRC represents approximately 10,000 workers across both railroads.

In response, Canada’s Labor Minister, Steven MacKinnon, directed the Canada Industrial Relations Board (CIRB) to step in and assist in resolving the outstanding issues between the parties by imposing final binding arbitration. This intervention effectively ended the lockout, which had lasted nearly a full day, allowing CN and CPKC to resume rail services.

Despite this temporary resolution, the NCBFAA Transportation Committee, alongside the Canadian International Freight Forwarders Association (CIFFA), continues to closely monitor the situation. The potential for work stoppages at the Canadian railroads remains a significant concern if new contracts are not reached soon.