Arbitration Results in Establishment of Two New Collective Agreements, According to CPKC
In a significant development, Canadian Pacific Kansas City (CPKC) has announced the implementation of two new collective bargaining agreements with the Teamsters Canada Rail Conference (TCRC). The agreements, established by an independent arbitrator, will cover approximately 4,000 workers, encompassing train and engine divisions and rail traffic controllers, across Canada.
According to the Calgary-based railroad, these deals provide enhanced labor stability for its Canadian operations, ensuring efficient and reliable service for the foreseeable future. The four-year agreements, effective from January 1, 2024, will run until the end of 2027, and include annual wage increases of three percent.
The TCRC represents two divisions: the Train and Engine (T&E) Division, comprising about 3,200 locomotive engineers, conductors, and train and yard employees, and the Rail Traffic Controller (RCTC) Division, consisting of roughly 80 rail traffic controllers who manage and direct rail traffic safely across the country.
These agreements follow a period of disruption in Canadian rail operations, with both major railways facing shutdowns due to labor disputes in August 2024. The arbitration process was initiated following government intervention due to recurring work stoppages in recent years.
These new agreements mark a step towards resolving labor issues within the Canadian rail industry, providing stability and continuity for both employees and the railroad company. The arbitrator’s award is final and binding, with no union ratification required. Any unresolved work rules will be negotiated through ongoing collective bargaining between the parties.
- The new agreements between Canadian Pacific Kansas City (CPKC) and the Teamsters Canada Rail Conference (TCRC) will positively impact businesses in Toronto and the finance industry, as they signal a boost in labor stability within the Canadian rail industry.
- Unlike previous disputes, the recently established four-year contracts with annual wage increases of three percent will extend across various divisions, including train and engine employees, rail traffic controllers, and those working in the T&E Division and RCTC Division.
- As a result of these agreements, industries that rely on timely and safe rail transportation in Canada, such as those in manufacturing or resource extraction, can expect improved delivery schedules and efficiency from Canadian Pacific Kansas City (CPKC).
