When it comes to averting a strike, Canada’s two largest railway operators are running out of steam.
Driving the news: Canadian Pacific Kansas City (CPKC) and Canadian National Railway (CN) will return to their respective bargaining tables today to negotiate new labour deals with unionized workers who have been threatening to strike for months. However, the mood isn’t optimistic.
- Canada’s new Labour Minister Steven MacKinnon has called the negotiation process “unacceptably slow,” with both sides, unsurprisingly, pinning the blame on each other.
- The main bones of contention regard what the union claims are excessive work hours and unsafe working conditions.
Catch-up: Workers were set to strike back in May, but Canada’s labour ministry ordered the industrial relations board to determine what rail shipments are vital to national health and must not be affected by a strike. The board is expected to deliver its findings by Friday.
- Once the report arrives, workers have to vote to reauthorize strike action and give 72 hours' notice. CN’s CEO expects a strike will happen by the end of the month.
Why it matters: CPKC and CN railways serve major trade arteries across the country. The strike would derail (sorry) trade in Canada just before the fall when shipping demand typically hits peak levels.—QH