Railcars with containers sit idle near the Roberts bank Super Port after a strike by railway workers on August 23, 2024, in Delta, British Columbia, Canada. Freight rail operations resumed across Canada on August 22, after federal intervention to end a disruption triggered by labor disputes at the country’s two main operators, Canadian National Railway and Canadian Pacific Kansas City. Canadian Labor Minister Steven MacKinnon ordered current collective agreements extended and “operations on both railways to resume forthwith.” (Photo by Don MacKinnon / AFP)
The federal labour board has issued a back-to-work order for rail workers following a contract dispute that saw Canada’s two main railways shut down.
As part of the decision by the Canada Industrial Relations Board (CIRB), binding arbitration has been imposed on the parties.
Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC) stopped shipments on Aug. 22 after talks broke down with workers over several contract issues.
That day, federal Labour Minister Steven MacKinnon directed the tribunal to begin the arbitration process to help get shipments moving.
The Teamsters union challenged MacKinnon’s decision. CIRB said on Aug. 24 that the tribunal did not have the authority to determine whether the government directive was valid.
“The board has concluded that, in this case, it has no discretion or ability to refuse to implement, in whole or in part, the minister’s directions or to modify their terms,” wrote chairwoman Ginette Brazeau in a pair of rulings.
The companies, conductors, dispatchers, and yard workers have been ordered to start operations at 12:01 a.m. on Aug. 26.
CPKC said it will comply with the CIRB order and officially end the lockout that began Aug. 22. The company has asked for employees to return to work on Sunday.
The current collective agreement remains in place until a new agreement is signed, CN said in an Aug. 24 news release.
The union said that it too will comply with the decision but plans to appeal the ruling, which it says 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,” said Paul Boucher, president of the Teamsters Canada Rail Conference.
The labour board ruled that binding arbitration will go into effect on Aug. 29.
CN and CPKC transport about $1 billion in goods each day, the Railway Association of Canada said. The Teamsters represent 6,000 CN workers and 3,300 CPKC workers.
The union said its concerns include rest periods and scheduling, as well as a company scheme that it said forces employees to relocate to remote locations for several months.
CN said the union dismissed its offers of better pay and improved rest and schedules. CPKC said that efforts to bargain in good faith with the union were in vain.