Canadian Pacific rail workers may strike tonight

Canadian Pacific (CP) rail workers will begin a strike tonight if they cannot reach a new contract agreement with management, potentially stranding shipments of crude, coal, fertilizer and chemicals.

Members of the Teamsters Canada Rail Conference-Train & Engine and the International Brotherhood of Electrical Workers (IBEW) refected contract proposals offered by CP during an 18-25 May vote held by the Canada Industrial Relations Board.

The unions issued a three-day strike notice to CP on 26 May saying they planned to strike beginning at 10pm ET.

CP has initiated its strike contingency plan and has begun to "wind down" operations and will implement an embargo effective at 12:01am tomorrow if there is a work stoppage.

The strike only would involve freight movements originating on the railroad's Canadian lines and US-origin cargoes headed to Canada. US-only shipments would continue to operate because the unions threatening to strike only represent Canadian workers.

The railroad said it would continue to meet with the unions "in the hopes of reaching agreements that are in the best interests of the entire CP family, its customers, shareholders and the broader North American economy."

CP "is still refusing to negotiate seriously," the Teamsters and IBEW said in a joint statement on 26 May.

"CP is offering more of the same contract language that workers just voted to reject," Teamsters president Doug Finnson said.

"CP has continually changed directions during negotiations with little evidence that a settlement was ever possible," IBEW System Council No. 11 senior general chairman Steve Martin said. Martin argued the unions have given CP "every reasonable opportunity to negotiate" but, "sadly, that has led us nowhere."

The unions said they are willing to continue talks until the strike deadline and beyond.

A 21 April strike was cancelled after the unions agreed to a vote on the previously proposed contracts. But union officials urged members to vote against the agreements. Roughly 98pc of Teamsters and 97pc of IBEW members voted against the contracts.

The Teamsters represent approximately 3,000 conductors and engineers at CP, while IBEW represents about 360 signals and communications workers.

A strike would be another blow for a carrier that struggled with congestion woes earlier this year.

CP carload volume has increased by 1.9pc this year through 19 May to 630,971 carloads. Intermodal volume is up by 6.2pc to 391,567 units.

Growth has been particularly strong in the energy, chemicals and plastics sector, up by 13.6pc compared with last year. Potash shipments are up by a similar amount. That has helped offset a 5.8pc drop in grain shipments.