CP Rail work stoppage causes crippling effect to Canada's economy

A work stoppage at CP Rail is causing major disruptions to an already beleaguered supply chain as the union and company are blaming each other with no new deal in sight.

Both sides are at the table with a federal mediator, but no solutions have been worked out.

"Lockout, strike, same issues as usual," said Bill Merriman, a train engineer picketing on the front lines in Calgary.

"Not so much wages, but pensions."

Merriman says conductors and engineers are willing to be away from work until a deal is reached.

"I would like to see it come to a quick conclusion but that's for the powers to be to make those decisions," said Merriman.

"We're here in solidarity of our brothers and sisters to get a better contract."

More than 3,000 CP Rail conductors, engineers, train and yard workers represented by Teamsters Canada Rail Conference (TCRC) are off the job after the two sides failed to reach a deal before a midnight deadline Sunday set by the union and the company for either a strike or a lockout.

Dozens of industry groups asked the government to intervene last week to begin the binding arbitration process before any strike or lockout.

That includes the Canadian Manufacturers and Exporters.

"This is a historic confluence of terrible circumstances between the pandemic, the trucking shortage that pre-existed the pandemic, and supply chain issues from natural disasters in BC that we still haven't recovered from," said David MacLean, Vice President.

"So this couldn't come at a worse time for Canadian business."

MacLean expects the disruption will lead to layoffs in the manufacturing sector while hitting consumers' pockets simultaneously.

"Worst case scenario is empty store shelves," he said.

"We're already seeing dramatic inflation. That is only going to get worse. Manufacturers are already shutting down. There are manufactures in Alberta that rely 80-90 percent of their business travels by CP rail."

On Wednesday, CP set a 72-hour deadline for a deal to be reached before it locked employees out. CP Rail spokesman Patrick Waldron said the company was at the negotiating table with federal mediators Saturday in Calgary, and at 8:45 p.m sent a new contract offer to the union.

It never received a response and said the union issued an early strike notice.

"We would consider the employees to be on strike," said Waldron.

Three minutes to the deadline of 10 p.m. Saturday, Teamsters issued a news release accusing the company of starting a lockout early and blamed CP for putting the "Canadian supply chain and tens of thousands of jobs at risk."

"As Canadians grapple with a never-ending pandemic, exploding commodity prices and the war in Ukraine, the rail carrier is adding an unnecessary layer of insecurity, especially for those who depend on the rail network," the statement said.

A few hours later, a second statement was issued saying it was a lockout but also a strike.

On Sunday, the union did not respond to CTV News' request for an interview.

"The actions last night by the TCRC leadership committee were dishonest and irresponsible, without any regard for the damage that this is going to do to the Canadian economy and the Canadian supply chain," said Waldron.

Federal Labour Minister Seamus O'Regan is in Calgary, receiving updates every four hours on contract talks.

"I don't intend on leaving Calgary until we get a deal," said O'Regan.

"For natural resources, for agriculture, for manufacturers, railways make the country move, they make the economy move."

CP Rail says this is the fifth work stoppage since 1993 and the eighth time in nine trips to the bargaining table that contract talks resulted in a need for federal conciliation.