The prospect of a strike by railroad workers in Canada is creating uncertainty among agricultural shippers, who warn that the transportation of fertilizer and major commodities could be interrupted by labor action.
Represented workers from Canadian National and Canadian Pacific Kansas City Southern — Canada’s largest railroads — overwhelmingly voted in favor of going on strike unless they get a new labor deal, the union recently announced.
Saturday’s results mark the second time the union has authorized a strike this year. Members previously approved a strike on May 1, which positioned the union to begin a work stoppage on May 22.
However, intervention by Seamus O’Regan, Canada’s Minister of Labour, closed that strike window, as he requested the Canada Industrial Relations Board (CIRB) to investigate whether a work stoppage would impact Canadians’ health and safety.
Until the Canadian government makes a ruling, the union cannot legally strike. A spokesperson for the union said Canadian law requires another vote because the previous strike authorization was only valid for 60 days and expired June 30.
CN said in a statement on July 12 that CIRB indicated it intends to issue its ruling by Aug. 9, and the board will provide another update then if a decision is not reached. A work stoppage cannot start until 72 hours after the government announces a decision.
Agricultural exporters have warned that a rail shutdown could have “devastating consequences” for the U.S. and Canada alike. A coalition of U.S. agricultural groups wrote O’Regan in May saying that even a short-term disruption could lead to weeks of production delays.
“The impact of a strike would be particularly severe as trucking is not a viable option for many shippers due to their high-volume needs and the long distances for many of the movements,” the groups wrote in their letter. “Many facilities are continuous operations that require reliable, uninterrupted rail service to produce and deliver essential products to customers.”
Represented employees include locomotive engineers, conductors, train and yard workers, and rail traffic controllers. Nearly 3,300 are employed by CPKC and around 6,000 work for Canadian National.
Talks between the union and Canadian National and CPKC began in November, but the parties are no closer to a new labor agreement. The union seeks better wages, improved working conditions and flexibility on fatigue management.