Canada rail workers vote to strike, work stoppage could start on 22 May

TORONTO (ICIS)–Workers at freight rail carriers Canadian National (CN) and Canadian Pacific Kansas City (CPKC) have voted in favor of a strike.

A first work stoppage could occur as early as 22 May, if no new collective agreements are reached by then, officials at labor union Teamsters Canada Rail Conference (TCRC) said in a televised announcement on 1 May.

The rail carriers warned that a work stoppage would disrupt supply chains throughout North America and constrain trade between Canada and the US and Mexico.

The two railroads account for the bulk of freight rail traffic in Canada.

Canada-based chemical and fertilizer producers rely on rail to ship more than 70% of their products, with some exclusively using rail.

In the run-up of strikes, producers have to make preparations. Longer strikes can force plant shutdowns and after a strike ends it can take weeks for normal operations to resume.

For the first 17 weeks of 2024, ended 27 April, Canadian chemical railcar loadings were 233,074, up 3.1% from the same period in 2023, according to  the latest freight rail data released on 1 May.

Chemical industry sources had warned about the possibility of a rail strike in Canada early last month.

The country’s labor law requires a minimum of 72-hours notice prior to a strike or lockout.

TCRC represents about 9,000 CN and CPKC engineers and conductors. The previous collective agreements expired on 31 December 2023.

Thumbnail photo source: CN