CN Rail strike could have ‘severe’ impact, warns retailers. Here’s what consumers need to know

A trade association representing retail companies across Canada is calling on the federal government to employ every tool at its disposal" to avert a potential rail strike, after thousands of Canadian National Railway Company (CN) workers have threatened to walk off the job later this month.

Some 3,000 CN workers represented by Unifor could strike as soon as March 21, as the impasse between the union and Canada's largest railroad company drags on into its fifth month.

Unifor said the potential strike, for which its members voted in favour earlier this month, will certainly lead to a slowdown in service. Meanwhile, the Retail Council of Canada warned that the job action would have a significant impact on consumers and various industries.

Industrial action that prevents the shipment of consumer goods and agri-food (whether inputs or finished products) could have a severe negative impact on the consumers we serve - being essentially every Canadian - along with our workforce of over two million," said Michelle Wasylyshen, a spokesperson for the Retail Council of Canada, in a statement to the Star.

Our members are also concerned about the broader impact on the Canadian economy and employment of cessation of CN shipments more generally," she added.

In a press release issued Feb. 17, providing an update on negotiations, CN said it did not expect any labour action to impact operations. A spokesperson for CN later confirmed to the Star in an email that the company has contingency plans in place and that operations will continue.

Job action would include a complete withdrawal of all services"

But Unifor told the Star that if the strike occurs, it will no doubt" have an impact, adding that the unionized employees currently in negotiations work in essential roles that impact day-to-day operations.

No matter what CN is saying there will be service interruptions, even if in the end they try to use managers to do our members' jobs," said Lana Payne, Unifor's national president.

If any job action takes place, it would be a complete withdrawal of all services," Unifor national representative Bruce Snow previously told the Star.

But Payne stressed that a strike is not the goal: A fair collective agreement is what we want to work toward."

Federal government in contact with both sides

While acknowledging that labour negotiations are complicated balancing acts," Wasylyshen with the Retail Council of Canada said the federal government must prevent an outcome that would negatively impact consumers and workers alike."

A spokesperson for the office of the federal minister of labour told the Star that the minister's office has been in contact with both sides, adding that the Federal Mediation and Conciliation Service has been supporting the two parties in negotiations.

Our government has faith in the collective bargaining process because the best deals are the ones made at the table," the government spokesperson said in a statement to the Star. We've seen firsthand that collective bargaining works, and encourage both parties to work together to resolve the issues and reach an agreement."

Union calls proposed wage increases subpar"

The main point of contention between the union and CN is the company's proposal to change the age for early retirement, from 55 with a minimum of 30 years of service, to 65 by the end of this year.

In the Feb. 17 press release, CN said their comprehensive" offer includes increases in net pay and benefits" along with improved working conditions for all represented employees."

Snow, however, told the Star that the proposed flex benefits would be costly for members, adding that the subpar" wage increases would be up to 3.5 per cent below federal inflation levels.

Payne said the union is calling on CN - which she said has made staggering" profits during the pandemic - to remove its proposed concessions from the bargaining table.

We want to get a fair collective agreement for our members," she said. These are working men and women who went to work every single day during the pandemic so that CN could continue to operate."

Workers delivered strong strike mandate earlier this month

Unifor, which represents around 315,000 workers across Canada, including unionized Toronto Star employees, is scheduled to go back to the bargaining table with CN on March 13.

Unifor's two national bargaining committees, which represent rail workers across clerical, mechanical, intermodal and facility management departments, have been in negotiations with CN since October, with the union filing for conciliation in December.

Earlier this month, Unifor Local 100 and Unifor Council 4000 voted 98 per cent and 97 per cent in favour of a strike, respectively.

The union must provide 72-hour notice before job action can begin. The earliest possible date for a strike is March 21, the union said.

It's unclear how a CN Rail strike would impact Via Rail passenger service. The crown corporation did not respond to repeated requests for comment from the Star.

Via Rail only owns three per cent of the tracks upon which it operates, according to the organization's 2017 to 2021 corporate plan. The majority of the tracks Via Rail uses - about 83 per cent - are owned by CN Rail.

Previous CN strike significantly impacted industries

Roughly 3,200 CN Rail workers previously went on an eight-day strike in November 2019 over working conditions. The job action halted shipments and disrupted industries across the country.

Last summer, about 750 CN Rail employees represented by the International Brotherhood of Electrical Workers walked off the job for two weeks after failing to reach a new agreement on benefits and wage increases.

CN, one of North America's largest railroad companies, hauls more than 300 million tonnes of commodities and consumer goods across the continent each year.

With files by The Canadian Press, Dhriti Gupta and Mahdis Habibinia

Joshua Chong is a Toronto-based staff reporter for the Star's Express Desk. Follow him on Twitter: @joshualdwchong