Canadian National Railway Company (CN) has formally proposed binding arbitration to resolve its ongoing labor dispute with the Teamsters Canada Rail Conference (TCRC).
The proposal was made earlier this week, according to a statement released by CN today.
Binding arbitration involves an independent arbitrator evaluating the demands of both parties and determining the terms of a new collective agreement. Despite this offer, the TCRC has rejected the proposal, as well as previous offers for voluntary arbitration.
Background on negotiations
CN has been in negotiations with the TCRC to modernize the existing collective agreement, aiming to enhance work-life balance for employees and improve productivity through changes in scheduling and hourly wages.
Currently, engineers and conductors are paid based on a legacy miles-based system without a fixed schedule.
In May, CN presented a simplified offer to the union that complied with government guidelines on work and rest and aimed to achieve some productivity gains, it said.
This offer was also rejected by the TCRC. CN maintains that all its proposals are aligned with the latest government regulations and the Duty and Rest Period Rules (DRPR), which were implemented in May 2023. These rules specify the requirements for hours of work and rest periods for employees in critical railway operations roles.
Canada Industrial Relations Board process
Last week, CN participated in a case management conference organized by the Canada Industrial Relations Board (CIRB) to discuss the Minister of Labour’s request for clarity on continuing activities during a work stoppage.
The parties were initially required to submit their replies to the CIRB by May 31, 2024. However, the CIRB has extended this deadline to June 14, 2024, requesting that specific themes identified in the submissions be addressed.
As it stands, the CIRB has not indicated a timeline for its decision, according to CN. Consequently, neither a strike nor a lockout can occur until the CIRB makes a determination, which is not expected before mid to late July 2024. Nonetheless, the CIRB’s request for clarity does not prevent CN and the TCRC from continuing their bargaining efforts.
Work and compensation
According to CN, by combining the DRPR and existing rest provisions in collective agreements, conductors and locomotive engineers currently work approximately 160 days per year on average.
In 2023, the average conductor earned approximately $121,000, while the average locomotive engineer earned around $150,000.
About CN
CN transports more than 300 million tons of natural resources, manufactured products, and finished goods annually. With a rail network spanning nearly 20,000 miles, CN connects Canada’s Eastern and Western coasts with the U.S. Midwest and the Gulf of Mexico.