Deadline set for Canadian Pacific Railways and its union to reach agreement
The deadline for the Teamsters Canada Rail Conference (TCRC) union to reach a deal with Canadian Pacific Railway will expire today.
Canadian Pacific said it will lock out nearly 3,000 conductors and engineers if TCRC doesn’t agree on a new deal or binding arbitration. The union is seeking improvements to wages, pensions and other benefits, and earlier in March union members voted by 96.7% to go on strike if necessary. The last strike by Canadian Pacific union members in May 2018 ended within days.
A lockout of and strike by TCRC members would exacerbate existing global supply chain issues. Along with shipments of commodities and other goods, fertilizer—particularly that containing Canadian potash—would be stranded ahead of the spring planting season. Demand for Canadian potash, wheat and other commodities sharply increased after Russian and Belarusian supplies were blocked by sanctions.
Expect TCRC and Canadian Pacific to reach an agreement and prevent a lockout. Federal mediators are working with both sides, recognizing that the consequences of a strike would reverberate beyond Canada. Should a deal not be reached, expect commodity prices, including of wheat and fertilizer, to rise, further pummeling Canadian and global consumers struggling with ever-rising inflation.
Wake up smarter with an assessment of the stories that will make headlines in the next 24 hours. Download The Daily Brief.
