Canadian Government Compels Rail Work Stoppage to End
The Canada Industrial Relations Board (CIRB) has ordered the two major Canadian freight railways and the Teamsters Canada Rail Conference (TCRC) to undergo binding arbitration over a new labor agreement that would replace the old one that expired in December 2023. A meeting of parties is to take place later this week.
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This action culminated on Saturday the jockeying that had been taking place in the lead-up to some deadlines set by the railways and labor union for last week that, if missed, threatened to shut down the transit of goods in commerce. It compels TCRC members to return to work and not go on strike, as they had threatened to do on Aug. 23 (see 2408230038). Both railway operators, Canadian National and Canadian Pacific Kansas City, said they would resume operations.
"While CN is disappointed an agreement could not be reached at the bargaining table, the Company is satisfied that this order effectively ends the unpredictability that has been negatively impacting supply chains for months," CN said in an Aug. 24 release. The continuing negotiation impasse appears to be over rest periods and scheduling.
CPKC said CIRB will be meeting with the parties on Aug. 29 to continue the imposition of binding arbitration. "Our team is executing its restart plan for the safe and orderly resumption of rail service across Canada. We are working with customers on a balanced return to normal operations."
Last week, both CN and CPKC had implemented labor lockouts (see 2408190049) that had taken effect just after midnight on Aug. 22. After the railways received word that the Canadian government would force the parties to undergo binding arbitration, the railways said they would call TCRC members to return to work.
However, TCRC had called for workers to go on strike at CN and not return to work at CPKC.
CIRB's order on Aug. 24 voids TCRC's plans to strike.
In response to the order, TCRC said it would "lawfully comply" with the CIRB decision, but that it would also appeal the ruling in federal court.
“This decision by the CIRB sets a dangerous precedent. It signals to Corporate Canada that large companies need only stop their operations for a few hours, inflict short-term economic pain, and the federal government will step in to break a union. The rights of Canadian workers have been significantly diminished today,” TCRC President Paul Boucher said in an Aug. 24 release. “The Trudeau Liberals have chosen to side against middle- and working-class Canadians, abandoning their supposed progressive values at the first sign of short-term supply chain disruptions."