Canadian National Railway Says Teamsters Unwilling to 'Seriously' Negotiate — Update

By Paul Vieira

OTTAWA-Canadian National Railway called Wednesday on the country's Liberal government to intervene immediately in talks with a Teamsters union to avert a labor stoppage at the railroad after midnight, saying the union is "unwilling" to strike a deal.

The last-minute request from the Montreal-based railroad casts a pall over negotiations with the Teamsters Canada Rail Conference ahead of a key negotiating deadline. Both Canadian National and Canadian Pacific Kansas City plan to lock out employees represented by Teamsters starting at 12:01 a.m. Eastern time Thursday unless new labor deals are reached, essentially shutting down rail-freight traffic in the country and upending the North American supply chain.

In a statement, Canadian National said it has made four offers to the Teamsters that improve safety rules, increase wages, and provide better predictability on work scheduling. The railroad said no deal has yet been reached, adding the real issue is "Teamsters inability or unwillingness to negotiate seriously."

It added that "a deal is not possible without a willing partner. The Minister of Labor must intervene."

A spokesman for Teamsters said Canadian National "cannot whine their way to a collective agreement. We urge the company to instead focus their efforts on reaching an agreement before midnight." The spokesman said the railroad has "demanded concessions, threatened to lock out workers, and now wants the federal government to save them from themselves."

Canadian National's statement is a blow to policymakers, who had urged the railroads and the union to reach a deal.

"It is in the best interest of both sides to continue doing the hard work at the table to find a negotiated resolution," Prime Minister Justin Trudeau said, according to a pool report tracking his visit Wednesday to a seniors' residence in western Quebec.

"Millions of Canadians, of workers, of farmers, of businesses right across the country are counting on both sides to do the work and get to our resolution."

Trudeau didn't respond to a question about the possibility of government intervention to stop a strike, according to the pool report. Government officials have repeatedly said they had no intention of intervening--such as referring the dispute to binding arbitration--arguing the railroads and the union carry the responsibility to reach a fair agreement.

In Calgary, Finance Minister Chrystia Freeland said the failure to reach a deal before the deadline would be akin to committing self harm to the economy. She added the railroads and the union need to "recognize the country has no patience with dillydallying right now....They need to get a deal done with alacrity."

Earlier Wednesday, a coalition of Canada's biggest business groups called on the Liberal government to take immediate action to ensure rail service is maintained.

"This is not about siding with either party; it is about standing up for Canadians. The federal government must show leadership and act before our trains--and with them, our economy--grind to a halt," said the coalition, consisting of the Canadian Chamber of Commerce, Business Council of Canada, Canadian Federation of Independent Business, and Canadian Manufacturers and Exporters.

Chicago-based Anderson Economic Group, which specializes in loss assessments during strikes and conflicts, estimates the Canadian and U.S. economies stand to lose a collective C$403 million ($296.5 million) in a three-day labor stoppage, and about C$1.4 billion should the dispute last seven days.

Both Canadian National and CPKC started last week to wind down operations in anticipation trains would stop moving due to a labor conflict.

Write to Paul Vieira at paul.vieira@wsj.com

(END) Dow Jones Newswires

August 21, 2024 18:25 ET (22:25 GMT)

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