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CN train
Canadian National Railway Co.

Thousands of CN Rail employees on strike amid contract talks

Nov 19, 2019 | 3:33 PM

OTTAWA — The federal government has urged Canadian National Railway Co. and the Teamsters Canada Rail Conference to continue negotiating as the roughly 3,200 conductors, train-persons and yard workers went on strike.

Labour Minister Patty Hajdu said Tuesday the government is concerned about the impact of a work stoppage on Canadians, but remains hopeful the two sides will reach an agreement.

The rail workers walked off the job after failing to reach a deal by a midnight deadline.

Union spokesperson Christopher Monette said they were still in talks with CN in hopes of reaching a negotiated settlement and ending the dispute as soon as possible.

The workers, who have been without a contract since July 23, say they’re concerned about long hours, fatigue and what they consider dangerous working conditions.

The dispute comes as CN confirmed Friday that it was cutting jobs across the railway as it deals with a weakening North American economy that has eroded demand.

“We are disappointed that the TCRC has initiated strike action which will result in a significant disruption to service,” Janet Drysdale, CN’s vice president of financial planning, said at the Scotiabank Transportation and Industrials Conference on Tuesday.

“We apologize to our customers, but we do appreciate their understanding that safety is always our first priority. Negotiations are expected to continue later today, under the watchful eye of federal mediators.”

CN currently handles more than half of all Canadian chemicals production. It is the only railway to service the three major petrochemical centres in North America, which includes the Alberta’s Heartland, the U.S. Gulf Coast and southwestern Ontario.

Alberta’s Minister of Energy Sonya Savage and Minister of Agriculture and Forestry Devin Dreeshen are calling for Prime Minister Trudeau to immediately recall Parliament to urgently address the CN Rail strike.

“Alberta farmers depend on rail to get their world-class products to market. We have seen the severe consequences of rail backlogs before,” said Dreeshen. “Farmers don’t need the added pain from compounding rail delays, especially after this difficult harvest. Now is the time to act.”

“CN Rail regularly ships in excess of 170,000 barrels of Western Canadian oil per day,” Savage noted. “Any disruption in shipments would have serious consequences for an economy that is already dealing with severe bottlenecks due to cancelled and delayed pipelines. Alberta cannot see further restrictions on our ability to export our product.

The Canadian Association of Petroleum Producers said in a statement that they will be monitoring the potential impact the strike will have on the industry’s competitiveness.

The Mining Association of Canada (MAC) also expressed “serious concern” regarding the strike and how it will affect the mining sector.

According to the association, the mining industry accounted for 52.3 per cent of rail freight revenue in 2018.

“In the minerals and metals sector, experience has demonstrated that a rail stoppage significantly impacts the ability of companies to bring essential inputs to their mines, and the ability to move mineral products and by-products to downstream customers,” said Pierre Gratton, chief executive of MAC.

“MAC members have advised that this strike will result in a severe reduction or elimination of railway capacity and will trigger the closure of mines with concurrent lay-offs of thousands of employees beginning in a matter of days.”