CP and Teamsters Canada Rail Conference prepare to enter into binding arbitration

Soon after a labor stoppage involving Calgary-based Class I railroadCanada Pacific Railway Limited (CP)and theTeamsters Canada Rail Conference (TCRC)commenced on March 20, the sides earlier today appear to have reached a level of détente, with CP saying it has reached an agreement with the TCRC—Train and Engine Negotiating Committee to enter into binding arbitration.

The TCRC has 16,000 Canadian-members in rail transportation and represents approximately 3,000 locomotive engineers, conductors, train and yard workers across Canada.

“CP is pleased to have reached agreement with the TCRC Negotiating Committee to enter into binding arbitration and end this work stoppage,” said CP President and CEO Keith Creel in a statement. “This agreement enables us to return to work effective noon Tuesday local time to resume our essential services for our customers and the North American supply chain.”

CP officials said in a statement that it wishes to thank the Canadian Federal Conciliation and Mediation Services “for its critical take during this negotiation,” adding that it will immediately begin working with its customers to resume normal train operations across Canada as soon as possible.

In a final and binding arbitration process, both parties agree to accept an arbitrator’s decision as final, according to TCRC.

“The decision to agree to final and binding arbitration is not taken lightly,” said Dave Fulton, TCRC. “While arbitration is not the preferred method, we were able to negotiate terms and conditions that were in the best interest of our members. Our members will return to work at 12:00 (noon) local time today.”

TCRC said that wages and pensions remain stumbling blocks, and the organization also said there will be no comment from union spokespersons to the media until the arbitration process is complete.

Prior to this development, the situation looked uncertain, in terms of reaching any type of near-term agreement.

On March 16, CP issued a 72-hour notice to the TCRC-Train & Engine to lock out employees if the union leadership and the company were unable to come to a negotiated settlement or agree to binding arbitration. And it added that CP had been negotiating in good faith since September, with Canadian Pacific (CP) and the TCRC leadership earlier this month had been meeting daily with federal mediators to reach a new negotiated collective agreement in hopes of avoiding a labor disruption.

“Despite those talks, our positions remain far apart,” CP said in a statement issued on March 16. “Yesterday, CP tabled an offer that addressed a total of 26 outstanding issues between the parties, including an offer to resolve the TCRC’s key issues of wages, benefits and pensions through final and binding arbitration.”

TCRC had a different take, with the organization’s spokesperson Dave Fulton saying on March 18 that this lockout denotes Canadian Pacific’s irresponsibility in terms of labor relations, as demonstrated by its poor behavior at the bargaining table.

“The lockout also demonstrates CP’s irresponsibility with regards to the continuity of the overall Canadian supply chain,” said Fulton in a statement. “After a never-ending pandemic, exploding commodity prices and the war in Ukraine, this lockout adds an unnecessary layer of insecurity for many Canadians. We acknowledge that the negotiations are difficult and that the parties are far apart. However, the TCRC has been and continues to be committed to remaining at the table and working with federal mediators to reach a negotiated settlement. It is well known that CP was the first to put the work stoppage on the table, and went so far as to forecast that the stoppage was coming.”