Commuter chaos avoided despite strike by CP Rail train conductors

CP Rail strike ends in tentative agreement The strike, which ultimately lasted less than a day, could have had far-reaching economic consequences.

MONTREAL -- Canada's three largest cities avoided chaos during Wednesday morning's commute after a last-minute deal between Canadian Pacific Railway and one of its unions ensured the work stoppage affecting its shipping customers wouldn't hit passenger services.

GO train passengers in the Greater Toronto Area, as well as suburban rail services in Montreal and Vancouver, will run as usual after an agreement was reached with the International Brotherhood of Electrical Workers representing 360 signalling workers just before Tuesday evening's strike deadline.

Via Rail, the crown corporation that operates passenger service across the country, said Wednesday all services are operating on their normal schedules except for Wednesday's train from White River to Sudbury, Ont., which was previously cancelled. Service along that line will resume normal service Thursday.

However, failure to reach a deal with the Teamsters Canada Rail Conference resulted in more than 3,000 train operators walking off the job late Tuesday night, shutting down freight service at Canada's second-largest railway at a particularly bad time for its biggest customers, which are still recovering from slowed winter service.

Teamsters Canada said the walkout occurred even as negotiations continued with the assistance of federal mediators. The union said it is "willing to remain at the bargaining table during the strike."

However, some frustrated shippers, wary of the impact of the railway's third strike since 2012, have already begun to call for government intervention.

In 2015, train crews ended a brief walkout and agreed to arbitration after the Harper government warned of back-to-work legislation. Three years earlier, federal back-to-work legislation was enacted to end a 10-day strike.

Employment Minister Patty Hajdu wouldn't answer reporters questions Wednesday about how long the government will allow the strike to go on before intervening.

"I'm quite pleased that they're at the table and right now we know that they're doing the hard work to get a deal so we'll keep our eyes peeled," she said in Ottawa.

The tentative agreement with the IBEW is encouraging and the government hopes there will be a resolution with the Teamsters, added Transport Minister Marc Garneau.

"We're going to allow things to unfold," he told reporters in Ottawa.

"We're mindful of the effect that this has on the economy."

CP Rail transports about 40 per cent of shipments by rail in Canada.

Freight customers say the strike will cause a significant economic impact and urge the federal government to take immediate action. It is the second time this year they have asked the government to intervene in rail shipment issues after both CP and Canadian National Rail encountered a winter weather-related backlog that shippers and producers said resulted in lost sales.

The Mining Association of Canada called on the government Wednesday to impose binding arbitration and require arbitration be a required step in future labour disputes involving Class 1 railroads.

A strike by CP workers will cause a shortfall of essential fuel and supply shipments to mines and prevent them from delivering their products, said CEO Pierre Gratton.

"On the backdrop of recent, painful and ongoing service disruptions in the rail freight market, and the damage this has already done to Canada's reputation as a reliable trading partner, the economy can ill afford the effects of a protracted labour dispute that grinds a half of Canada's rail freight capacity to a halt," he said in a news release.

The Aluminum Association of Canada also called for quick action because of the major challenges caused for smelters.

"The financial and logistical impact on our operations are significant in an already challenging market environment for our businesses," said CEO Jean Simard.

The strike will have severe and long-lasting impacts especially for companies that are captive to CP Rail and have no alternatives for shipments, said the Chemistry Industry Association of Canada.

"Some of these goods are used in essential health and safety applications, such as municipal water treatment plants. Canadian citizens could feel the effects of this work stoppage in a matter of days, according to our members," said association CEO Bob Masterson.

Prime Minister Justin Trudeau said Tuesday that the federal government would not be rushed into introducing back-to-work legislation, preferring instead to employ various levers to motivate both sides to reach a settlement.

"Quite frankly, we have companies that have gotten used to the fact that in certain industries, the government in the past was very quick to legislate against unions," Trudeau said during a conference in Toronto.

"We are not going to do that."