Canada’s rail networks remain in chaos despite government efforts to end a labor dispute that has threatened supply chains and carries the potential for widespread economic impact.
Canada's Minister of Labour and Seniors Steven MacKinnon announced early Thursday evening that he directed the Canada Industrial Relations Board to impose final binding arbitration and have the Teamsters Canada Rail Conference complete new deals with both railroads. However, trains at either railroad cannot start running until the board makes a decision.
Canadian National Railway ended its lockout at 6 p.m. ET Thursday, prompting workers to submit a 72-hour strike notice on Friday morning, according to a statement from the Teamsters Canada Rail Conference. Canadian Pacific Kansas City's lockout of workers continues, however, pending an order from the Canada Industrial Relations Board.
"Despite the Labour Minister’s referral, there is no clear indication that the CIRB will actually order an end to the labour dispute at CPKC," the union said in its Friday morning statement.
The union and representatives from CPKC and Canadian National met with the industrial relations board Thursday, with another meeting set for 10 a.m. ET today.
A spokesperson for the industrial relations board wrote in an email Friday that the CIRB is addressing the Labour Minister’s referral “with utmost urgency.” MacKinnon also directed the Canada Industrial Relations Board to extend the term of the union’s contracts with each railroad until a new collective agreement is signed.
“The government has acted to protect Canada’s national interest," CPKC President and CEO Keith Creel said in a statement. "We regret that the government had to intervene because we fundamentally believe in and respect collective bargaining; however, given the stakes for all involved, this situation required action."
Agricultural and other industry groups had called on Canada’s government to take action to avoid a strike, warning the potential for billions of dollars of economic damage from a prolonged work stoppage. Fertilizer and bulk commodities rely on rail for the majority of shipments, and companies said transportation disruptions could force plants to shut down.
This story has been updated with details of workers’ strike notice issued to Canadian National.
