CN Rail issues lockout notice to union, Canada-wide freight rail stoppage looms

By Promit Mukherjee

OTTAWA (Reuters) – Canadian National Railway (TSX:), one of Canada’s two main rail companies, formally notified the Teamsters union in Canada on Sunday that it would start locking out union workers early on Thursday.

“Unless there is an immediate and definite resolution to the labour conflict, CN will have no choice but to continue the phased and progressive shutdown of its network which would culminate in a lockout,” it said in a statement.

“Despite negotiations over the weekend, no meaningful progress has occurred, and the parties remain very far apart.”

Canada’s other main rail operator, Canadian Pacific (NYSE:) Kansas City, has already told the Teamsters union it will start locking out members early on Thursday. This means the vast majority of rail transit of goods in Canada would grind to a halt by Thursday, barring last-minute labour agreements between the companies and their respective arms of the Teamsters’ union.

Separately, Teamsters also issued a 72-hour strike notice to CPKC late on Sunday.

“Unless parties reach last-minute agreements, a work stoppage will occur at 00:01 on Thursday, August 22,” it said in a statement.

The companies and the union accuse each other of bad faith in the talks. The teamsters say CN Rail and CPKC are seeking concessions that could endanger worker safety, a charge both the operators deny.

The federal Liberal government has so far dismissed pleas from business groups to intervene, saying it wants the companies and the union to sort out their differences via negotiations.