CP issues 72-hour lockout notice to TCRC

Canadian Pacific yesterday issued a 72-hour notice to the Teamsters Canada Rail Conference (TCRC)-Train & Engine of its plan to lock out employees on March 20 if the union leadership and the company are unable to come to a negotiated contract settlement or agree to binding arbitration.

"For the sake of our employees, our customers, the supply chain we serve and the Canadian economy that is trying to recover from multiple disruptions, we simply cannot prolong for weeks or months the uncertainty associated with a potential labor disruption," said CP President and CEO Keith Creel in a press release.

The Canadian government encouraged both sides to come to an agreement.

"The government strongly encourages both parties to consider making the compromises necessary to reach a deal that is fair for workers and the employer. Canadians have worked together throughout the pandemic to find solutions to our collective challenges. They expect the same from such actors in our national economy," said Seamus O'Regan Jr., Canada's minister of labor, in a prepared statement.

CP and TCRC leadership have been meeting daily with federal mediators to reach a new collective agreement. Despite those talks, the two sides remain far apart.

Yesterday, CP tabled an offer that addressed a total of 26 outstanding issues between the parties, including an offer to resolve the TCRC's key issues of wages, benefits and pensions through final and binding arbitration.

Also yesterday, TCRC rejected CP's latest offer. One sticking point is a union proposal involving the pension plan, which if accepted would be "even more destabilizing to the pension plan for all of CP's unionized employees, not just the 10% who are TCRC members," CP officials said.

"We are deeply disappointed that we find ourselves in this position," said Creel. "CP will continue to bargain in good faith with the TCRC leadership to achieve a negotiated settlement or enter binding arbitration."

The Class I has begun implementing its work stoppage contingency plan and will work with customers to wind down Canadian operations, CP officials said.

Earlier this month, 96.7% of the union's locomotive engineers, conductors, trainpersons and yardpersons employed with CP voted to authorize a strike action against CP.

"At the bargaining table, CP continues to dismiss our members’ demands and are unwilling to negotiate the issues they have created," said TCRC Spokesman Dave Fulton in a prepared statement. "We remain committed to reaching an acceptable agreement that addresses our members' issues. Our members are fully engaged and will be ready in the event CP carries out the notice."

The TCRC will continue to work with the mediators to reach a negotiated settlement and remain at the bargaining table until the March 20 lockout deadline and beyond, union officials said.