CPKC locks out TCRC employees, moves to full shut down of Canadian rail network

Core Points - Canadian Pacific Kansas City (CPKC) has initiated a lockout of employees from the Teamsters Canada Rail Conference (TCRC) due to unsuccessful negotiations, affecting both the Train and Engine (T&E) division and the Rail Traffic Controller (RCTC) division [1][2] - CPKC has proposed binding arbitration as a solution to resolve the disputes, which would end the work stoppage and minimize disruptions to supply chains and the economy [2][3] - The company has a strong history of collective bargaining, having only experienced one work stoppage in 36 rounds of negotiations with other unions since 1993, contrasting with the TCRC's frequent need for federal intervention [3][4] Summary by Division TCRC – T&E Division - CPKC has offered a three-year status-quo contract renewal with competitive wage increases, aligning with recent settlements with other railway unions, without any changes to work rules [4] - The enhanced final offer includes wage increases exceeding inflation, an engineers' guaranteed extra board, increased shift differentials, and adjustments to pay timing [4][5] TCRC – RCTC Division - CPKC has proposed a renewed agreement for rail traffic controllers that includes competitive wage increases [5] - The TCRC – T&E division represents approximately 3,200 employees, while the TCRC – RCTC division includes around 80 rail traffic controllers [5] Operational Impact - CPKC has executed a safe and structured shutdown of train operations across Canada to prepare for a full resumption once the work stoppage concludes [5] - The company emphasizes the importance of resolving the labor dispute quickly to protect Canadian supply chains and prevent further economic disruption, especially during the fall peak shipping period [3][4]