There is some confusion in Canada over the status of the Teamsters Canada Rail Conference (Teamsters) strike notice issued against Canadian Pacific Rail (CP).

As earlier reported the Teamsters passed a strike notice that allows a strike to take place after midnight EST on 16 March. There are now some media reports that a strike has begun after an agreement between the two sides could not be reached. This information is not correct. The teamsters are required to give 72 hours notice of strike after a strike ballot has been passed. Notice can be given after 16 March, but at this point has not yet been issued. Neither side is commenting, but Canadian media report negotiations are still underway.

In the meantime the Alberta Wheat and Barley Commissions are lobbying the Federal Government of Canada to “take immediate action to avoid impacts of any disruption of CP service as it will have a devastating impact on western Canadian farmers who are dealing with numerous mounting challenges in addition to trying to recover from the worst drought in 20 years”. The Commissions want the Government to intervene “through which ever measures necessary” to prevent the Teamsters striking.

In a separate letter to the Federal Government the Retail Council of Canada said a strike would undermine a successful recovery from the supply chain challenges businesses have faced over the last two years. “The challenges they have had to overcome have included COVID-19, extreme weather events, increasing inflationary pressures, labour shortages and supply chain disruptions. Now achieving a successful recovery is threatened by the possibility of a work stoppage on the Canadian Pacific (CP) railway network”.

In the container supply chain, a CP rail strike would be a major challenge for the ports of Vancouver and Montreal. Maersk Line has already advised that its TP1 service, which calls at Prince Rupert and then Vancouver, will offload all containers in Prince Rupert, which is serviced only by CN rail. The strike would also cause major disruptions for the movement of potash, other fertilisers and animal feeds, and crude oil between Canada and the US.

*Update: Since this story was first published CP has issued a lock out notice. CP has give the Teamsters 72 hours notice of its “plan to lock-out employees at 00:01 ET on March 20, 2022 if the union leadership and the company are unable to come to a negotiated 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 Keith Creel, CP President and CEO. “The world has never needed Canada’s resources and an efficient transportation system to deliver them more than it does today. Delaying resolution would only make things worse. We take this action with a view to bringing this uncertainty to an end.”

CP has tabled an offer that it said addresses 26 of the key issues on the table, including an offer to resolve wage, benefits and pension issues through arbitration. The Teamsters rejected that offer and are continuing to push for work rule changes.