Teamsters remove picket lines at CN, strike persists at CPKC

The recent work stoppage at Canadian National Railway Co. and Canadian Pacific Kansas City Ltd. has had significant impacts on supply chains and commuters across Canada. In response, the Teamsters Canada Rail Conference has taken down picket lines at CN and workers will be returning to work on Friday. However, the work stoppage at CPKC remains ongoing pending an order from the Canada Industrial Relations Board.

The dispute between the unions and the railways escalated after months of tense contract negotiations, leading to the unprecedented lockout of workers. Federal Labour Minister Steven MacKinnon has referred the matter to the CIRB for binding arbitration to resolve the impasse.

During a meeting with the board, CPKC expressed willingness to discuss the resumption of service, but the union is challenging the constitutionality of MacKinnon’s direction. Both sides have been at odds over key issues such as rest periods, scheduling, and employee relocation.

The work stoppage has not only affected supply chains but also thousands of commuters in Toronto, Montreal, and Vancouver. Services on various transit lines, such as GO Transit in Ontario and TransLink in British Columbia, remain disrupted due to the ongoing dispute.

The impacts of the work stoppage are being felt throughout the country, prompting calls for a swift resolution to the conflict. While the government remains committed to collective bargaining, the dispute has reached a critical point where intervention was necessary.

As negotiations continue and the CIRB assesses the situation, Canadians are hopeful for a quick resolution to the ongoing labour dispute. Stay tuned for updates as the situation unfolds.

©2024 The Canadian Press

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Avison Young discusses impacts of rail strike

The recent rail strike has put a significant strain on the transportation of goods across Canada, particularly affecting the intermodal shipping industry. Avison Young has warned about the impact of the strike and the potential long-term repercussions if the strike continues.

Intermodal transportation, which involves shipping containers of goods between trains, ships, and trucks, has been severely impacted by the strike. With one train railcar having the capacity of two trucks, the shift to trucking as an alternative solution is not feasible due to a shortage of truckers and high fuel prices. Additionally, large and heavy freight simply cannot be transported by trucks, further exacerbating the issue.

Avison Young senior manager Warren D’Souza highlighted the potential consequences of the strike, stating that there will be a significant delay in recovery even after an agreement is reached. The lack of available infrastructure and developable land in the Greater Toronto Area adds to the challenge, as CN and CP seek to expand their operations. With the GTA already facing a tight industrial market with a 2.4% vacancy rate as of Q2 2024, the absence of these railways is creating a significant gap in the supply chain that will not be easily resolved.

As the rail strike continues to disrupt the transportation of goods, it is important for businesses to consider alternative solutions and prepare for potential delays in supply chains. The Canadian economy is at risk of being strained by the ongoing strike, emphasizing the importance of finding a resolution quickly to minimize the impact on businesses and consumers alike.

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Implications of a Canadian Rail Strike on the US

The potential shutdown of Canada’s freight rail network due to a labor dispute between Canadian rail operators and the Teamsters Canada Rail Conference union could have significant repercussions for both the Canadian and US economies. If an agreement is not reached, a strike could start on August 22, leading to the lockout of nearly 10,000 workers and the shutdown of Canada’s rail freight network, which exported $279 billion in 2022.

This disruption could impact supply chains beyond Canadian borders, affecting the transportation of essential goods like lumber, oil, coal, cars, wheat, chemicals, and fertilizer. The US, which imports these resources from Canada, could also face delays and price increases in the construction industry, where over 60 percent of Canadian lumber exports were transported by rail in 2023.

The potential strike could lead to increased demand for alternative transportation methods like trucking, which may experience higher prices and delivery delays. In the US, freight railroads play a crucial role in transporting construction-related materials, with one rail car capable of carrying as much material as five trucks.

Canada’s Labor Minister, Steven MacKinnon, has stated that he will not intervene with binding arbitration and has urged the railways and the union to reach agreements at the bargaining table to prevent a full work stoppage. Until a resolution is reached, the disruption in cross-border transport could strain domestic resources and impact the supply chain for construction materials in the US.

It is essential for all parties involved to work together and find a resolution to avoid the potential shutdown of Canada’s freight rail network and mitigate the impact on both the Canadian and US economies.

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Teamsters Local 213 successfully prevents concrete strike

The threat of a concrete strike in Vancouver has been temporarily averted, as Teamsters Local 213 announced a tentative agreement with Heidelberg Materials. After issuing a 72-hour strike notice on July 2, the union’s bargaining team worked late into the night to reach a resolution, which was confirmed in a tweet on July 5. The ratification vote is scheduled for July 14 at the Teamsters Union Hall, where details of the agreement may be shared as early as July 6.

This development is a positive sign for both the union members and Heidelberg Materials, as it indicates a willingness to negotiate and find common ground. The potential strike could have disrupted construction projects and affected stakeholders in the industry, so this agreement comes as a relief to many.

It is important to note the significance of effective communication and bargaining in labor disputes. By engaging in productive discussions and finding solutions that benefit all parties involved, potential strikes can be avoided, ensuring a smoother operation and a more stable work environment.

Overall, the resolution of the possible concrete strike in Vancouver highlights the importance of collaboration and compromise in labor relations. With the tentative agreement in place, both the union and Heidelberg Materials can move forward with their work while maintaining a positive relationship.

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