Canada: Union files additional strike notice from Aug. 26; rail disruption possible /update 3

Further rail service disruptions are possible nationwide after Teamsters Canada, which represents rail workers, served Canadian National Railway (CN) with a strike notice effective 10:00 ET Aug. 26. It is not immediately clear if the union plans to strike from that period. The development follows an Aug. 22 decision by the Canadian government to intervene in a dispute between Teamsters Canada and two of the country's largest freight rail operators, CN and Canadian Pacific Kansas City (CPKC). The government ordered the two companies to end their lockout of workers represented by Teamsters Canada and that the current collective agreement be extended until both parties reach a new agreement under binding arbitration; the lockout occurred at 00:01 Aug. 22 when labor and management failed to reach an accord resolving their dispute by a deadline set by the union for launching a strike.

Although authorities have instructed all employees to return to work, it remains unclear when rail services will fully resume. It could take several days for freight and passenger operations to return to normal as CN and CPKC reposition rolling stock and clear their transport backlogs. Should the strike proceed on Aug. 26, additional disruptions will almost certainly occur. Cross-border trade between the US and Canada will likely experience disruptions. Should an additional strike occur, pickets by striking workers are likely at transport hubs or CN or CPKC offices.