CPKC claps back at rail workers' strike threat with lockout notice

One of Canada’s two railway titans is clapping back after its workers got the green light to move ahead with a strike in just over a week.

Canadian Pacific Kansas City (CPKC) is threatening to lock out employees of the Teamster Canada, which represents workers at CPKC and Canadian National (CN) railways, by midnight on Aug. 22 if “union leadership and the company are unable to come to a negotiated settlement or agree to binding interest arbitration.”

The announcement comes in response to the Friday ruling of a federal labour tribunal that designated the country’s rail workers as “non essential,” clearing the path for a nationwide work stoppage approved by workers in a vote in May.

Despite being deemed non-essential, the federal labour board was clear that a strike in Canada’s railways could have significant economic costs, with the movement of goods grinding to a halt just as grain farmers who rely on rail shipments begin harvest.

In a news release on Friday, CPKC urged the Teamsters to accept its offer of binding arbitration.

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“All stakeholders want an end to this needless uncertainty as rapidly as possible so that we can continue serving the North American economy,” CPKC said.

The company framed its lockout notice as a last ditch effort to save the supply chain.

“CPKC is acting to protect Canada’s supply chains, and all those who depend on them, from the more widespread disruption that would be created should a work stoppage occur during the fall peak shipping period,” the company said.

“Delaying resolution to this dispute only makes things worse, causing more disruption and damage to Canada’s international reputation as a reliable trading partner.”

Saskatoon-based potash company Nutrien urged a timely resolution to the dispute on Friday, as it relies on rail service to ship its products.

The global potash supplier said it was taking “proactive measures” to mitigate the impact of a short-term disruption.