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"The railroads don't care about farmers, small businesses, supply chains, or their own employees," a union president said. "Their sole focus is boosting their bottom line, even if it means jeopardizing the entire economy."
Both of Canada's major freight rail companies—key cogs in North America's supply chains—locked out workers and shut down operations on Thursday due to a labor dispute over worker hours and conditions, as a union leader said the companies were holding the Canadian economy "hostage."
The unprecedented stoppage comes with high stakes for the 9,300 affected engineers, conductors, and yard workers—and the country's export-driven economy. The two companies, Canadian National (CN) and Canadian Pacific Kansas City (CPKC), own almost all of the tracks and haul more than $700 million USD worth of goods per day.
The Teamsters Canada Rail Conference, which represents the affected workers across both companies, said the two corporations had refused many of its "good faith" offers.
"Neither CN nor CPKC has relented on their push to weaken protections around rest periods and scheduling, increasing the risk of fatigue-related safety issues," the union said in a statement.
Paul Boucher, the union's president, said that "CN and CPKC have shown themselves willing to compromise rail safety and tear families apart to earn an extra buck. The railroads don't care about farmers, small businesses, supply chains, or their own employees. Their sole focus is boosting their bottom line, even if it means jeopardizing the entire economy."
🚂 The men and women who keep our CN and CPKC trains running want decent working conditions that ensure safety for us all🚨. It’s time to give them our support.💪#Canlab pic.twitter.com/bGXQC1yuo1
— Teamsters Canada (@TeamstersCanada) August 21, 2024
Boucher said in a video statement on social media that the companies were holding Canada's economy "hostage" in an attempt to get the federal government, led by Liberal Prime Minister Justin Trudeau, to force a binding arbitration agreement on the workers, an idea that business groups such as the Canadian Chamber of Commerce support.
So far, Trudeau's government hasn't done so and has instead pressured the two sides to come to a deal.
"Millions of Canadians, of workers, of farmers, of businesses right across the country are counting on both sides to do the work and get to a resolution," Trudeau told reporters Wednesday.
The Liberals, a centrist party, rely on the votes of the smaller New Democratic Party in Parliament. NDP was founded in part by organized labor and has warned Trudeau not to force the rail employees back to work.
"For too long we have seen Liberals and Conservatives interfere in these types of labor disputes to the advantage of the employer, to the detriment of the worker," Jagmeet Singh, NDP's leader, told reporters on Monday. "That is wrong, and we will oppose that."
In 2022, the U.S. federal government did take such action in a railway labor dispute. The U.S. Congress and President Joe Biden forced railworkers into an agreement that four key unions didn't agree to—angering many working-class Americans and progressive advocates, who argued that the right to strike had been nullified by the government intervention.
Canada has previously seen such federal interventions—or the threat of them, which can force workers' hand in negotiations—but in the past, disputes have occurred with just one of the major rail companies or the other, with their contracts expiring in alternating years.
This time, the timing has allowed for an industry-wide dispute, and a larger transportation disruption, including not just freight rail but also some passenger rail services that operate on lines owned by the two companies. There are no traffic controllers on the CPKC tracks, so passenger rail can't operate, The Canadian Broadcasting Corporationreported.
The companies have used the disruption as part of the rationale for government action. CPKC openly called for binding arbitration on Thursday, saying in a statement that an agreement is "not within reach" and that the union "continues to make unrealistic demands that would fundamentally impair the railway's ability to serve our customers with a reliable and cost-competitive transportation service."
The union argues that CPKC wants to "gut the collective agreement of all safety-critical fatigue provisions" and CN is trying to extend work days in western provinces, raising what the union calls a "a fatigue-related safety risk," The Guardianreported.
CN's net income for 2023 was $4 billion USD, while CPKC's was $2.9 billion USD.
"We need full compensation for the families and workers affected by the East Palestine train derailment—not a $3.6 million raise for its CEO," wrote Sen. Ed Markey.
Norfolk Southern CEO Alan Shaw got a large raise last year after the train derailment in East Palestine, Ohio that devastated that community. Shaw's total compensation rose by 37% in 2023, which put it at over $13 million for the year.
The train derailment occurred in February of last year and exposed the community to toxic chemicals that caused a large fire. Though there were no human fatalities, the wreck sparked grave public health concerns and the company has faced major criticisms for what have been described as lax safety practices.
Jonathon Long, general chairman of the American Rail System Federation (ARSF) of the Brotherhood of Maintenance of Way Employees Division of the International Brotherhood of Teamsters (BMWED), wrote about the problems with the rail company in a letter last year.
"I am writing to share with you the level of disregard that Norfolk Southern has for the safety of the railroad's workers, its track structure, and East Palestine and other American communities where NS operates," he wrote. "They gamble with your money, and you hold all the risk if they lose by putting a toxic train in the ditch in your community."
Sen. Ed Markey (D-Mass.) criticized Shaw's compensation raise in a tweet on Monday.
A year later Norfolk Southern is still more focused on its bottom line than the safety of the communities it serves. We need full compensation for the families& workers affected by the East Palestine train derailment—not a $3.6 million raise for its CEO. https://t.co/1h74XgSvBh
— Ed Markey (@SenMarkey) February 27, 2024
Shaw's compensation increase last year came despite the fact the company's net income decreased by 44% in 2023. The company also increased its spending on lobbying by 30% last year. A group of shareholders from the firm Ancora Holdings is trying to replace Shaw and other members of the company's management with new leadership, because it doesn't feel Shaw is leading the company in the right direction.
"It's alarming that the board rewarded Mr. Shaw with a massive raise and total compensation of $13.4 million during the same year he presided over industry-worst operating results, sustained underperformance, and a tone-deaf response to the derailment in East Palestine," the group told CNN in a statement. "This failure of corporate governance … reinforces the need for sweeping changes to Norfolk Southern’s well-paid board."
The Department of Justice sued Norfolk Southern for violating the Clean Air Act last year, and the Supreme Court ruled in June of last year that a former Norfolk Southern employee who alleged he developed colon cancer after being exposed to hazardous chemicals could proceed with a lawsuit.
It remains to be seen how long Shaw will be in charge of Norfolk Southern, but the company has certainly had a tumultuous year since the disaster in East Palestine, and it doesn't seem he's yet paid a major price for what's happened under his leadership.
"Mr. Shaw and his boardroom allies have no credible plan and no viable record to run on," the investors from Ancora told CNN.
In their respective campaign launches last fall, Dan Osborn and Zach Shrewsbury sounded themes once familiar to voters in their home states in the heyday of progressive populism, but not heard much lately.
The major parties on Capitol Hill like to boast about how much more “representative” their congressional delegations have become in recent years. But that’s only in the most-discussed categories of diversity—race, age, gender, ethnicity, and sexual orientation. Working-class Americans rarely end up in the halls of Congress. Fewer than 2% of Congress members had working-class jobs at the time they were elected.
Two working-class candidates hope to improve those numbers next year, by winning U.S. Senate seats in Nebraska and West Virginia, states currently represented by anti-labor politicians, but which were once bastions of a more populist, pro-worker politics.
In Nebraska, former Bakery Workers (BCTGM) leader Dan Osborn is challenging two-term Republican Deb Fischer, and he leads in a poll commissioned by Nebraska Railroaders for Public Safety. Osborn is a steamfitter from Omaha who helped lead a successful strike by 1,500 Kellogg’s workers. They shut down plants in four states for 11 weeks in 2021.
In West Virginia, Zach Shrewsbury is also running for U.S. Senate. He’s a military veteran (as is Osborn), a community organizer, and the grandson of a coal miner. Shrewsbury hopes to replace multi-millionaire Joe Manchin by preventing governor Jim Justice, a billionaire coal baron, from claiming the seat that the corporate Democrat is vacating.
In their respective campaign launches last fall, both candidates sounded themes once familiar to voters in their home states in the heyday of progressive populism, but not heard much lately.
At a campaign kickoff event in late September, Osborn denounced “the monopolistic corporations… that actually run this country” and pledged to “bring together workers, farmers, ranchers, and small business owners across Nebraska around bread-and-butter issues that appeal across party lines.”
While picketing with striking General Motors workers in Martinsburg in October, Shrewsbury explained that he’s “running to win and show that working class people can run for office, even high office. We can’t be ruled by the wealthy elite who don’t understand everyday American life.”
Shrewsbury isn’t afraid of being red-baited: “If caring about working-class people, caring about people having bodily autonomy, water rights, workers’ rights, makes you a socialist, then call me whatever you want. Doesn’t bother me,” he told The Guardian recently.
Shrewsbury plans to compete in next year’s Democratic primary, but Osborn is currently collecting the 4,000 signatures necessary to get on Nebraska’s November 2024 ballot as an independent. He hopes to avoid an unhelpful association with the national Democratic Party in a state which chose Donald Trump over Joe Biden by 19 points in 2020.
Osborn supporters in Nebraska unions, and even the state Democratic Party, believe his non-partisan stance may be helpful. According to Jeff Cooley, a railroad union official who leads the Midwest Nebraska Central Labor Council, Osborn’s focus on rail safety and the Protecting the Right to Organize (PRO) Act, paid leave time, minimum wage increases, and misclassification of workers as independent contractors “offers hope to all workers in Nebraska regardless of political party.”
Osborn’s platform also highlights the need to curb corporate misbehavior ranging from routine consumer rip-offs to Big Pharma price gouging and monopolistic practices in the meatpacking industry which favor big agriculture over small family farmers and ranchers.
Dan Osborn, a leader in the 2021 Kellogg’s strike, is running for U.S. Senate as an independent in Nebraska. A poll commissioned by a Nebraska Railroaders group found he was slightly ahead of the incumbent Republican.
(Photo: Osborn campaign)
Jane Kleeb, a past Bernie Sanders delegate who chairs the Nebraska Democratic Party and serves as an Our Revolution board member, told the local media “it would be very interesting for Democrats, Libertarians, and Independents to all come together with the one goal of breaking up the one-party rule at the top of the tickets in our state.”
Kleeb acknowledged to Labor Notes that, at the moment, “the brand of the Democrats is not the best when it comes to working class and communities of color voters.” Meanwhile, in rural communities like her own, “people think Democrats are wimpy, just want to tax us, and take away our guns.”
Neither Osborn nor Shrewsbury look or sound wimpy. Before going to work for Kellogg’s as an industrial mechanic and becoming president of BCTGM Local 50G, Osborn served in the Navy and two state national guard units. Shrewsbury was in the Marine Corps for five years. After his discharge, he joined Common Defense to rally fellow veterans against what that group calls “Trump’s corrupt agenda of hate” and “the entrenched power of greedy billionaires who have rigged our economy.”
Osborn believes that his Senate race could be “the most viable independent campaign in America” next year.
Shrewsbury has been an organizer for Citizen Action and the New Jobs Coalition, where he met retired AFL-CIO organizing director Stewart Acuff, now a resident of West Virginia. Acuff hopes to enlist national union backing for Shrewsbury’s campaign. The two of them bonded while canvassing to build grassroots support for federally funded green jobs, environmental clean-ups, and infrastructure projects employing union labor. Acuff believes that Shrewsbury is uniquely equipped to challenge the “corporate colonialism that is still robbing a people and their state of much-needed resources.”
Shrewsbury wants to use his campaign “to help revitalize labor here and everywhere, like Bernie did.” Like Sanders, who won West Virginia’s Democratic presidential primary in 2016, Shrewsbury isn’t afraid of being red-baited. “If caring about working-class people, caring about people having bodily autonomy, water rights, workers’ rights, makes you a socialist, then call me whatever you want. Doesn’t bother me,” he told The Guardian recently.
In addition to voting for a senator next November, Nebraska voters will consider a ballot measure backed by teachers in the Nebraska State Education Association. It would repeal a Republican-backed tax scheme that aids private schools instead of financing public education.
Osborn sides with the teachers, showing what Kleeb calls “a real contrast” between Osborn and Fischer, who has built a $2.7 million re-election campaign war-chest. Fischer’s top donors include construction bosses, defense contractors, her Senate Republican colleagues, and AIPAC (the American Israel Public Affairs Committee).
Osborn has raised more than $100,000 in small donations so far. He believes that his Senate race could be “the most viable independent campaign in America” next year, particularly if Nebraska’s Democratic primary produces no serious competition for Fischer’s seat. Meanwhile, he is spending 40 hours a week doing boiler maintenance and repair work at Boys Town in Omaha, as a member of Steamfitters and Plumbers Local 464.
Osborn hopes to take more time off from his day job soon to campaign around the state, with backers like Nebraska Railroaders for Public Safety. This advocacy group just conducted a favorable poll and then endorsed him.
Their survey of 1,048 likely voters revealed considerable discontent with Fischer, who promised to serve only two terms but is now seeking a third. Despite Osborn’s lack of name recognition, their poll showed he had a slight lead over Fischer, which grew larger when survey participants were informed about the biographies and positions of both candidates.
The Nebraska Railroaders are taking that as an encouraging sign that their state still has an independent streak that could help “elect a next-generation representative of the working class instead of continuing to send out-of-touch millionaires back to Washington to fail us.”