Canadian National Railway Warns of Lockout on Aug. 22
Major freight railroad Canadian National Railway Co. (CN) said over the weekend that it would lock out members of the Teamsters Canada Rail Conference (TCRC) if CN and the union haven't been able to hash out a new labor contract or agree to binding arbitration.
Sign up for a free preview to unlock the rest of this article
Timely, relevant coverage of court proceedings and agency rulings involving tariffs, classification, valuation, origin and antidumping and countervailing duties. Each day, Trade Law Daily subscribers receive a daily headline email, in-depth PDF edition and access to all relevant documents via our trade law source document library and website.
The lockout would occur starting at 12:01 EDT on Aug. 22.
CN's peer and competitor, Canadian Pacific Kansas City (CPKC), announced on Aug. 9 similar intentions to lock out TCRC members should the negotiations impasse continue. TCRC in turn served a strike notice to CPKC on Aug. 18, effective just after midnight on Aug. 22.
"Despite negotiations over the weekend, no meaningful progress has occurred, and the parties remain very far apart," CN said in an Aug. 18 release. "Unless there is an immediate and definite resolution to the labour conflict, CN will have no choice but to continue the phased and progressive shutdown of its network which would culminate in a lockout."
TCRC confirmed on Aug. 18 that it received CN's lockout notice.
CN and CPKC have the full list of announced embargoes on their websites. According to CN's list, carloads of non-hazardous materials will face embargoes effective Aug. 22. Intermodal shipments originating at U.S. ports and Midwest interchanges that are bound for Canada have already been embargoed as of Aug. 16.
CPKC said that embargoes would be effective Aug. 20 for all shipments originating in Canada, all shipments originating in the United States destined to Canada, and all carload traffic destined to Canadian interchanges.
Both CN and CPKC have said the embargoes and the planned shutdowns help ensure that the rail networks in Canada are free of rail cars carrying hazardous materials ahead of the work stoppage (see 2408120031).
"This planned shut down helps to ensure the safety of the communities in which we operate and the safety of our customers’ goods, and to optimize the network’s recovery following a labour disruption," CN said.
The last labor agreements between TCRC and the Canadian freight railways expired on Dec. 31, 2023, according to CPKC.
In response to potential disruptions to rail service, the National Customs Brokers and Freight Forwarders Association (NCBFAA) said in an Aug. 19 update the NCBFAA Transportation Committee and the Canadian International Freight Forwarders Association (CIFFA) "are closely monitoring this situation and will provide our respective members with service updates, as they are received the railroads, TCRC, and the Canadian government."