Impending Rail Strike in Canada


The Teamsters Canada Rail Conference (TCRC), a union representing rail workers, has announced plans for a strike after months of negotiations with Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC) failed to yield a deal. If an agreement isn't reached by May 22nd, rail operators and dispatchers nationwide will strike. 

CPKC's CEO, Keith Creel, expressed concern about the timing, stating that a strike would be detrimental, particularly with the upcoming harvest season. He outlined two proposed options for TCRC members: a "status quo deal" with pay-related changes or a "progressive hourly deal" aimed at improving employees' quality of life and wages.

However, CN reported that the union rejected their proposed package, which included significant wage increases and scheduled consecutive days off. The union's next negotiation meeting is scheduled for May 13th. Both CPKC and CN are cautious about the prospects of reaching an agreement before a potential labour disruption, which could impact the Canadian supply chain and the North American economy. 

While hopeful to avoid a strike, CPKC's CEO emphasized their readiness to handle it if necessary, prioritizing the needs of shareholders, customers, and fellow employees. Investors are interpreting the company's guidance as preparation for a strike scenario.



Where is your Business primarily located?