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CP Rail issues notice of force majeure and shuts down railroad, workers strike

Canadian Pacific Railway (CP) halted operations over a labour dispute early on Sunday, March 20, with CP and the Teamsters Canada Rail Conference (TCRC) each blaming the other for the stoppage that will likely disrupt shipments of key commodities at a time of soaring prices.

We are very disappointed with this turn of events,” said TCRC spokesperson Dave Fulton. The union said in a statement that it had begun to strike across the country in the dispute that it says affects 3,000 engineers, conductors and yard workers.

Canada’s second-biggest railroad operator accused the union of misrepresenting the company’s position, saying in a statement that the Teamsters were “well aware of the damage this reckless action will cause to the Canadian supply chain.” Minister of Labour Seamus O’Regan Jr. said CP and Teamsters were still at the table with federal mediators. “We are monitoring the situation closely and expect the parties to keep working until they reach an agreement,” he said in a tweet just after midnight.

Canada, the largest country by area after Russia, depends heavily on rail to move commodities and manufactured goods to port. CP’s network runs across much of southern Canada and extends as far south as Kansas City in the United States.

The shutdown is the latest blow to Canada’s battered supply chain, which last year weathered floods in British Columbia that washed out track and suspended access to Canada’s biggest port. Such a stoppage would disrupt the movement of grain, potash, coal as well as intermodal containers. CP had notified the union on Wednesday that it would lock out employees on Sunday, barring a breakthrough in talks on a deal covering pensions, pay and benefits. It said the key bargaining issue is the union’s request for higher pension caps.

The country’s last major railway labour disruption was an eight-day Canadian National Railway Co (CNR) strike in 2019. However, in the past 12 years, there have been 12 stoppages due to poor weather, blockades or labour issues, according to the Western Canadian Wheat Growers Association.

For more information, please call David Lychek, Director – Ocean & Air Services at (905) 882-4880, ext. 1207.

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