There is yet another potential supply chain disruption in the works. This time it involves strikes at the Canadian National Railway (CN) and the Canadian Pacific Kansas City Railway (CPKC).

On May 1, the Teamsters Canada Rail Conference (TCRC) announced that close to 10,000 workers at CN and CPKC voted to authorize strikes. Under the collective bargaining process in Canada, if a vote authorizes a strike, there is a mandatory 21-day cooling off period before the strike or stoppage take place.

“After six months of negotiations with both companies, we are no closer to reaching a settlement than when we first began. Both companies are trying to strip our collective agreements of safety-critical rest provisions. We are at an impasse, with the companies failing to understand that the Teamsters will never compromise on safety or bargain with Canadian lives.” Paul Boucher, president of the TCRC

TCRC said in a news release that CN conductor, locomotive engineers, and yard workers voted 97.6% to authorize a strike. At CPKC, 99% of conductors, locomotive engineers, and yard workers authorized a strike. Negotiations will continue during the cooling off period with the possibility of deadlines being extended.  The current collective agreement between TCRC and the railroads expired on December 31, 2023, but Canadian law stipulates that the agreement is extended until both parties reach an agreement. 

“Ultimately, despite five months of consistent discussions, the TCRC has made very few concessions towards a negotiated agreement and has been unclear on what it is seeking for employees other than to continue focusing on a list of approximately 200 local and regional demands unrelated to a modern consolidated agreement benefiting employees and customers alike,” CN said in a statement. 

“In addition, the Union is unavailable to meet until May 13. CN has been and remains working hard to reach a negotiated mutually beneficial agreement with the TCRC. Regrettably, CN maintains a cautious outlook regarding possibility of finalizing a deal before a labor disruption that would affect the Canadian supply chain, the North American economy and our employees,” CN wrote. 

CPKC said it is committed to negotiating in good faith and responding to its employees' desire for higher pay and improved work-life balance, while respecting the best interests of all our railroaders, their families, our customers, and the North American economy. 

According to Mike Steenhoek, Executive Director of the Soy Transportation Coalition, a potential strike or stoppage would only be limited to the rail networks in Canada. U.S. railroads, including the U.S.-based networks of CN and CPKC, operate under a different agreement with U.S.-based railroad workers. The most recent contract in the U.S. was finalized in December of 2022.

Even so, any rail delivery originating in the U.S. and destined for Canada or originating in Canada and destined to the U.S. would be impacted by a strike or stoppage.  Some U.S. agricultural exports do occur via Canadian ports.  Moreover, a substantial volume of fertilizer originates in Canada and is delivered via rail to the U.S. market.  Those shipments would be impacted by a strike or stoppage, Steenhoek said. 

“Uncertainty and tumult are kryptonite to any functioning supply chain. Unfortunately, over the past several years, we continue to experience one challenge after another that impede the ability of agriculture and the broader economy to be as successful as they can be.  Hopefully a strike in Canada can be avoided and the negotiations will result in an agreement that benefits both railroads and workers and restores a degree of predictability to the supply chain,” added Steenhoek.