Canadian Pacific Railway shutdown drags on, threatening farm output

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Canadian Pacific Railway Ltd. says it’s at an deadlock with union negotiators in a labour dispute that has shut down the second-largest rail community in Canada, threatening the availability of fertilizer to farmers forward of the spring planting season.

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Trains had been idle for a second consecutive day on March 21, as CP and Teamsters Canada continued to argue publicly over who began the disaster. The Teamsters Canada Rail Convention (TCRC) — which represents roughly 3,000 CP engineers, conductors, and prepare and yard staff — is working picket traces in main cities throughout the nation.

“We’re at an deadlock,” CP spokesperson Salem Woodrow mentioned in an interview on Monday morning, including the railway intends to proceed bargaining in good religion.

TCRC didn’t instantly reply to calls on Monday morning, however the union’s Twitter account posted a cartoon exhibiting a businessman perched on a mountain of cash, accusing a employee of being grasping for requesting a increase to their pension cap. The 2 sides are reportedly at odds over pensions, wages and guidelines round work schedules.

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CP’s internet revenue was $2.9 billion in 2021, up from $2.4 billion the earlier 12 months, in line with the corporate’s most up-to-date earnings replace. Annual revenues elevated by 4 per cent to $8 billion.

The railway mentioned it pays TCRC locomotive engineers a median annual wage of $135,442, and that the common pay of its conductors, yard staff and prepare staff is $107,872.

CP can also be within the closing phases of its plan to construct the primary rail community linking the U.S., Mexico and Canada. In December, CP’s US$31-billion acquisition of the Kansas Metropolis Southern (KCS) rail line closed right into a voting belief. The corporate is now awaiting a choice later this 12 months from the U.S. Floor Transportation Board on whether or not it might take management of the KCS community.

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The federal authorities has to this point resisted stress to step in and use back-to-work laws to finish the standoff.

“CP and Teamsters Rail stay on the desk,” Labour Minister Seamus O’Regan’s workplace mentioned in an electronic mail on Monday morning. “We place confidence in their potential to succeed in an settlement. Canadians count on them to do this ASAP.”

Canadian fertilizer producers and farmers say the railway shutdown comes on the worst time, since many rely upon CP traces throughout the Prairies for his or her provide of fertilizer. The Russian invasion of Ukraine has destabilized one of many world’s most vital bread baskets, heaping stress on Canadian grain farmers in Western Canada to supply a bumper crop and stave off a world meals disaster. However with out sufficient fertilizer, Prairie farmers might miss an important window to spice up crop yields, in line with Nutrien Ltd., the worldwide fertilizer producer primarily based in Saskatoon.

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A gaggle of U.S. Senators from North Dakota, Montana and Indiana urged Prime Minister Justin Trudeau final week to avert a disruption on CP traces. The 4 Republican senators, led by Kevin Cramer of North Dakota, mentioned a rail shutdown would create a “freight capability disaster that may have a profound affect” on U.S. agriculture and power sectors lengthy after the labour dispute is resolved.

“Due to the Keystone XL pipeline cancellation, Canada and the US depend on CP to hold heavy Alberta crude oil to US refineries,” the March 15 letter reads. “With out the flexibility to maneuver heavy Canadian crude, gas provide shortages shall be exacerbated and agricultural producers who depend on diesel to energy their gear shall be compelled to pay even larger gas prices.”

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Negotiators on either side have been in each day conferences with federal mediators in Calgary, however didn’t come to an settlement earlier than the 12:01 a.m. lockout deadline on Sunday. Teamsters put out a launch about quarter-hour earlier than the deadline, blaming CP for locking out the union and placing the Canadian provide chain in danger.

“Canadian Pacific administration have to be taken to job for this example,” spokesperson Dave Fulton mentioned within the launch.

However CP accused TCRC of “withdrawing providers” — which primarily means staff stopped working — earlier than the midnight deadline. After that, CP shut down its operations, Woodrow mentioned.

“CP didn’t lock out its workers,” she mentioned, including that “CP made a proposal and was sitting on the desk ready for a response” when TCRC issued its information launch a couple of lockout.

• E-mail: jedmiston@nationalpost.com | Twitter: jakeedmiston