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Rail shutdown possible in two weeks, as lockout warnings follow labour board ruling

The country's two main railways warned Friday they will lock out their workers in less than two weeks unless the two sides can agree on new contracts, lending fresh weight to the threat of a work stoppage that would snarl supply chains nationwide.

As the negotiating clock ticks down, Canadian National Railway Co. and Canadian Pacific Kansas City Ltd. both said lockouts on Aug. 22 are imminent, barring a breakthrough at the bargaining table.

The warnings came hours after the Canada Industrial Relations Board ruled that a work stoppage would pose no "serious danger" to public health or safety, opening the gate to a full-fledged strike or lockout. If either occurs, employees at CN or CPKC would not be compelled to continue hauling goods, including key commodities such as chlorine for water and propane for care centres.  Some 9,300 conductors, engineers and yard workers at CN and CPKC have been bargaining on and off for months over a pair of new collective agreements, on top of a third deal for CPKC rail traffic controllers.

Canadian Pacific says it will lock out 3,300 members of the Teamsters Canada Rail Conference (TCRC) one minute after midnight on Aug. 22 -- the earliest moment allowed under the tribunal's timeline -- unless a deal is secured.  "If no resolution is reached during bargaining through the extended cooling-off period, and the TCRC continues to refuse binding interest arbitration, CPKC will have no choice but to take this action," the company said in a release, citing supply chain stability.

CN called on the federal government to impose binding arbitration, saying it has "lost faith" in the negotiating process. A phased shutdown of its network would also culminate in an Aug. 22 lockout of 6,000 workers, it said. "We have made four offers this year -- offers that include points on wages and labour availability while maintaining safety, and the union has yet to make as much as a single counteroffer," said CN spokesman Jonathan Abecassis.

The union said the lockout warnings amount to an escalation that was "unexpected and needlessly antagonizing."  "Contrary to CN's claims, the company has not shown any flexibility or willingness to compromise at the bargaining table," said spokesman Christopher Monette.  Sticking points in the talks boil down to crew scheduling, fatigue management and safety, the Teamsters said. The union has rejected binding arbitration with both companies.

Shippers and producers say the potential stoppage at CN or CPKC -- or both simultaneously -- would halt freight traffic, clog ports and disrupt industries.

This is an excerpt from the CTV news article.