Illinois Fertilizer & Chemical Association
Supply · Service · Stewardship

Canadian Rail Strike Looming

Three unions representing nearly 10,000 railway workers involving both CN, the Canadian National Railway, and CPKC, the Canadian Pacific-Kansas City railway, have given joint notice that their members have voted almost unanimously to strike action by May 22. This strike would affect both of Canada’s national railway systems.

Just over a year ago, the Canadian Pacific Railway completed a $31 billion. deal with Kansas City Southern and now operates under the name CPKC. Contracts involving locomotive engineers, conductors, and yard workers at CN and CPKC expired at the end of last year, and the Teamsters Canada Rail Conference is currently attempting to renegotiate a third agreement covering CPKC rail traffic controllers. Rail transport is critical to Canada's economy - and especially to its agricultural economy, being the most efficient carrier for bulk grain and potash. Nearly 70% of Canadian agricultural chemicals and fertilizers are delivered by rail. CN said in a statement that unions have opposed moving toward a more modern agreement based on an hourly rate and scheduling changes.

The parties are far apart on agreement and are now observing a mandatory federal mediation period of 21 days, which will expire on May 21st. At this point, the strike only affects Canadian trackage, however, fertilizer with Canadian origin bound for the US would be impacted, and the strike could spill over to US rail unions.