More than seven months after the Canadian Industrial Relations Board’s (CIRB) order imposing binding arbitration between CN and the Teamsters Canada Rail Conference (TCRC), the railroad is reporting the arbitrator’s decision regarding terms of a new collective agreement.
CN on April 7 said arbitrator William Kaplan established a new three-year agreement that includes an annual wage increase of 3% (download below). Effective from Jan. 1, 2024, through Dec. 31, 2026, it replaces the previous agreement that expired Dec. 31, 2023, and does not require ratification by the union, which represents approximately 6,000 conductors, conductor trainees, yard coordinators, and locomotive engineers across the CN network in Canada. The ruling, CN said, followed six days of mediation and a “comprehensive arbitration process.”
(AWARD LETTER COURTESY OF TCRC)
“Although CN remains disappointed that a negotiated agreement was not reached at the bargaining table, the company is pleased to be moving forward,” the Class I railroad said. “CN also remains committed to modernizing the collective agreement for the benefit of employees, customers, and the North American economy.”
“To reiterate, binding arbitration was never the TCRC’s goal when seeking to renew the Collective Agreement(s),“ TCRC wrote in an online letter to members. “Unfortunately, CN’s demands were (and remain) completely unacceptable throughout the entire bargaining process. The Company would not relent on what it considered necessary operational changes, primarily resulting from reforms in government regulation.”
CN in October 2024 reported that mediation meetings would occur in March, with the arbitrator having 60 days to rule.
Background
What happened? CN and CPKC had been in separate negotiations at intervals with the TCRC in Canada to renew contracts that expired Dec. 31, 2023. Even with assistance of federal conciliators, the parties had not been able to agree on wages and work/rest provisions. TCRC represents approximately 10,000 engineers and conductors combined at the railroads.
When the parties’ cooling off period expired just after midnight on Aug. 22 with no agreements or binding arbitration in place, a lockout began. But it was short-lived. CN at 6 p.m. ET initiated its recovery plan, and CPKC at 6:22 p.m. ET announced that preparations were under way to restart service in Canada. Why? Minister of Labor Steven MacKinnon at 5 p.m. ET on Aug. 22 invoked Article 107 of Canada’s federal labor code and ordered the CIRB “to assist the parties in settling the outstanding terms of their collective agreements, including by imposing final binding arbitration.” Additionally, he directed the Board “to extend the term of the current collective agreements until new agreements have been signed and for operations on both railways to resume forthwith.” The Board did so on Aug. 23.
