Canadian border agents have reached a tentative agreement with the government of Canada, the Public Service Alliance of Canada and Customs and Immigration Union announced Tuesday.
The deal, which must still be ratified by union members, averts a strike that was set to begin at 12:01 a.m. ET Friday. A strike could have led to longer processing times for shippers trucking freight between the U.S. and Canada as well as traffic back-ups at more than two dozen border crossings.
“Our bargaining team has been working around the clock to secure the best contract for our members, and this tentative agreement is a testament to their incredible hard work and dedication,” Sharon DeSousa, national president of the Public Service Alliance of Canada, said in a statement.
Details of the agreement will be released following ratification by the 9,500 represented members of the Canada Border Services Agency. Members of the Public Service Alliance of Canada and Customs and Immigration Union have been without a contract for two years.
The Canadian government in a statement said the agreement reflects that common ground was found. The tentative deal includes “wage enhancements and other benefits for employees,” according to the Treasury Board of Canada Secretariat, which represented the government during the negotiations.
Paul Brashier, vice president of drayage and intermodal with ITS Logistics, in an email to Supply Chain Dive said with a tentative deal in place, “it should be a quick return to normal.”
Potential for shipping disruption on the border, however, still lingers as Canada’s major railroads face their own threat of a strike. Unions representing workers at Canadian National and Canadian Pacific Kansas City overwhelmingly voted in favor of a strike in early May, though the timing of a walkout remains up in the air as federal regulators become involved in negotiations.
In its most recent update, CPKC said it is unlikely the parties will be in a position to initiate a legal strike or lockout before mid-July and that labor action would depend on a decision from the Canada Industrial Relations Board. Disruption to rail transportation would disproportionately hurt agricultural shippers, who rely on the mode to transport the majority of grain and fertilizer.
“We recognize that this referral has created challenging uncertainty for all stakeholders regarding the timing of a potential work stoppage on our Canadian rail network,” CPKC said in its update.
Sarah Zimmerman contributed to this story.
