CP begins network shutdown after union strike notices

Written by Railway Age Staff
TCRC union

Photo: TCRC

Canadian Pacific has initiated a shutdown of its network after a strike notice from two unions.

On Tuesday, the Teamsters Canada Rail Conference (TCRC) Train & Engine and the International Brotherhood of Electrical Workers (IBEW) signal maintainers each gave the railroad a 72-hour strike notice informing the company of their plans to strike at 12:01 a.m. Eastern Time on April 21.

“CP has commenced and will continue to execute a safe and structured shutdown of its train operations in Canada,” the company said in a statement to customers on its website. “An embargo application for shipments routing to and from CP Canadian locations is now in place to be effective 0001, Saturday, April 21, 2018.”

The  embargo applies to all shipments originating in Canada which are billed to any Canadian or United States destinations, and shipments originating in the U.S. which are billed to any Canadian destinations. CP added the embargo can be rescinded at any time.

“CP will continue to bargain in good faith with the TCRC and the IBEW and remains committed to achieving a win-win solution for the company and the two unions. CP urges both unions to work closely with the company and federal mediators to achieve a positive outcome as soon as possible.”

Canadian Pacific, headquartered in Calgary, said it made “significant movement” in bargaining Monday, presenting Teamsters Canada with three- and five-year contract options. The railroad said it planned to present three-year and five-year pacts to IBEW at a meeting Wednesday.

“Serving a strike notice is part of the bargaining process that unions must follow if they want to be able to strike,” Canadian Pacific Chief Executive Officer Keith Creel said in a statement. “We remain committed to achieving a win-win solution and urge the two unions to work closely with us and the federal mediators to achieve a positive outcome as soon as possible in the hours leading up to the deadline.”

The strike notices come as Canadian Pacific – the country’s second-largest carrier behind Canadian National – has been making progress working through congestion from heavy demand by oil and grain shippers compounded by severe winter weather in western Canada.

Canadian Pacific in 2017 came to terms with intermodal and maintenance of way unions, the latter represented by TCRC.

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