While an agreement has been reached with CN, securing a 3% wage increase over three years, the Teamsters union is still in arbitration with CPKC.
Canadian National (CN) and approximately 6,000 employees represented by the Teamsters Canada Rail Conference (TCRC) have reached a new three-year collective agreement through binding arbitration.
This follows months of labour unrest, negotiations, and a shutdown of Canada’s rail system.
The CN-TCRC agreement includes annual wage increases of 3%, is effective from January 1, 2024, to December 31, 2026, and does not require union ratification.
It covers conductors, conductor trainees, yard coordinators, and locomotive engineers across CN’s network in Canada.
The decision issued on April 7 concludes the dispute that resulted in the suspension of operations by both of Canada’s major railways in August 2024.
Arbitration between Canadian Pacific Kansas City (CPKC) and about 3,300 Teamsters union members working for the company is still ongoing.
CN welcomed the arbitration ruling and reaffirmed its efforts to maintain strong relationships with employees while ensuring the safe, reliable delivery of goods.
Although the company remains disappointed that an agreement was not reached at the bargaining table, it expressed its happiness about moving forward.
In a statement on its website, CN reiterated its commitment to “modernizing the collective agreement for the benefit of employees, customers, and the North American economy.”
Meanwhile, TCRC acknowledged that although the new CN-TCRC agreement maintains the status quo and includes annual wage increases, key issues regarding scheduling, rest, and fatigue protections remain unresolved.
The union, which represents almost 135,000 workers in Canada in all industries from coast to coast, emphasized that these issues should be addressed through free collective bargaining.
It also called on the federal government to launch a full industrial review of the rail sector to “promote long-term stability, address the root causes of labour unrest, and identify how Ottawa can better support more harmonious labour relations in the future.”
The labour dispute between TCRC and Canada’s two major railways, CN and CPKC, escalated over several months.
The dispute primarily centered around salary increases and mandatory rest periods.
In May 2024, approximately 9,300 unionized conductors, train operators, and engineers at CN and CPKC voted in favour of strike action.
However, the federal labour minister referred the matter to the Canada Industrial Relations Board (CIRB) to assess whether a work stoppage would threaten public safety.
Discussions broke down in early summer, as TCRC accused CN and CPKC of refusing to engage meaningfully at the bargaining table.
The railways, in turn, advocated for binding arbitration to resolve the dispute—a process the TCRC rejected on the grounds that it would undermine workers’ rights to strike.
CN and CPKC issued embargoes on sensitive and hazardous goods in preparation for a potential work stoppage. And, on August 9, the CIRB ruled that the railways were not obligated to maintain service during a strike or lockout.
This cleared the way for a full work stoppage following a 13-day cooling-off period.
Strike action commenced on August 22, 2024, along with employer lockouts, and led to a complete shutdown of Canada’s national rail network.
The disruption immediately halted the movement of goods worth over $1 billion per day and affected both cross-border trade and commuter rail services.
In response to growing economic concerns, the federal government intervened.
The labour minister ordered both parties into binding arbitration, and on August 24, the CIRB directed CN and CPKC to resume operations by August 26.
Both railways complied with the order and returned to work ahead of arbitration.
At Cole International, we offer freight forwarding and customs brokerage services to ensure your goods are moved seamlessly and your customs are cleared effortlessly.
If you transport goods via rail, please reach out to one of our trade professionals to discuss the impact of the CN-TCRC agreement on your business and stay updated on the CPKC situation.