An arbitrator has awarded Canadian Pacific Kansas City (CPKC) rail traffic controllers a four-year collective agreement with 3% annual wage increases, following a lengthy bargaining dispute that saw no items agreed upon during negotiations.
The interest arbitration involved CPKC and the Teamsters Canada Rail Conference Rail Traffic Controllers, representing approximately 90 rail traffic controllers and 18 trainees based in Calgary. The dispute was referred to arbitration after the Canada Industrial Relations Board directed in August 2024 that all matters between the parties be settled through interest arbitration.
No agreements reached during bargaining
The parties began bargaining in September 2023 and met numerous times before the August 2024 labour disruption. Despite assistance from experienced Federal Mediation and Conciliation Service mediators, they were unable to reach agreement on anything.
“Not a single union or company proposal was signed off,” the arbitrator noted. “Accordingly, a great many outstanding issues proceeded to a multi-day mediation/arbitration.”
The arbitrator, W.K., emphasized this was unusual in a mature collective bargaining relationship, though not unheard of. Both parties acknowledged at the outset of mediation that nothing was agreed upon.
Union sought higher increases, operational changes
The TCRC sought general wage increases of 3.5% in each year of a four-year term, along with various benefit improvements and increases to shift differentials. The union argued its members, who perform the same work as colleagues at Canadian National Railway, should not be compensated up to 7% less than their CN counterparts.
The union’s priority non-monetary proposals included a workload management tool, provisions allowing employees to redeem banked overtime, and restrictions on desk reassignments to ensure they were reasonable and safe.
The TCRC argued chronic staffing shortages at the operations centre and quality of life concerns supported their proposals. They noted the company was performing well financially, with positive revenue, income and earnings metrics.
Company defended established pattern
CPKC argued the normative interest arbitration criteria should lead to rejection of what it called the union’s excessive proposals. The company pointed to an established wage pattern of 3% annually that it had agreed to with other unions and that was awarded in a CN comparator case.
The company maintained that other CPKC unions received economic improvements beyond general wage increases only in return for operational efficiencies. CPKC walked through various collective agreements to demonstrate trade-offs, arguing there was no basis to award catch-up to CN rates without reciprocity.
“The fact that other unions did not broadcast their having agreed with CPKC to operational efficiencies in their reporting to their membership – exactly what was exchanged for various economic improvements – did not make them any less real,” the company argued.
Arbitrator follows established pattern
The arbitrator determined that replication was the most important interest arbitration criterion and identified “the existence of an established pattern of 3% general wage increases in each year of the collective agreement.”
Looking at internal comparators and the external CN comparator, the arbitrator found no reason to depart from this “firmly established normative, pervasive, uncontradicted pattern.”
The arbitrator noted that free collective bargaining settlements with other CPKC unions reflected bargaining trade-offs, though their extent and value was contested. The award sought to achieve similar balance by providing shift differential improvements and benefit increases balanced with some company-requested adjustments.
Award includes workload management committee
Beyond the 3% annual wage increases from January 1, 2024 to December 31, 2027, the award includes several notable provisions:
Shift differentials increased to $1.50 per hour for shifts starting between 2 p.m. and 9:59 p.m., and $2 per hour for shifts starting between 10 p.m. and 5:59 a.m.
A workload management system featuring an RTC Workload Review Committee with working rail traffic controllers and directors. The committee will meet monthly to assess workload parameters and make recommendations to a steering committee.
Various benefit improvements including increased dental maximums, vision coverage, life insurance, and disability benefits over the contract term.
A guarantee of one banked overtime day per rail traffic controller, with specific terms to be worked out by the parties.
New pension arrears repayment provisions requiring employees with arrears of $10,000 or less to repay within one year, and those with more than $10,000 to repay within two years.
Arbitrator rejects ‘breakthrough’ expectations
The arbitrator noted both parties characterized the other’s proposals as breakthroughs, but emphasized that significant changes to mature collective agreements are best achieved through free collective bargaining with appropriate give and take.
Quoting the union’s own report to members, the arbitrator agreed that “Interest Arbitration traditionally does not result in ‘breakthroughs’, meaning no major wins for either the company or the union.”
The collective agreement consists of unexpired provisions from the predecessor agreement plus the terms of this award. Any proposals not specifically addressed were deemed dismissed.
The arbitrator remained seized to assist with implementation of the award.
Award at a Glance
Contract Term: Jan. 1, 2024 – Dec. 31, 2027
WAGES
- 2024: 3% increase
- 2025: 3% increase
- 2026: 3% increase
- 2027: 3% increase
SHIFT DIFFERENTIALS
- 2:00 p.m. – 9:59 p.m.: $1.50/hour
- 10:00 p.m. – 5:59 a.m.: $2.00/hour
DENTAL BENEFITS
- 2025: Annual maximum $2,250
- 2026: Annual maximum $2,300
- 2027: Annual maximum $2,350
ORTHODONTICS
- Lifetime maximum: $1,750 (effective 2025)
For more information, see CPKC v TCRC (RTC), 2025 CanLII 49392 (CA LA).
