Canadian government orders union, railroads to resume operations

Canadian government orders union, railroads to resume operations

Labour Minister MacKinnon directed the Canada Industrial Relations Board to impose final binding arbitration in an effort to reach an agreement

by Manal Barakat, SeaNewsEditor


Update: 23.08.2024


Labour Minister Steven MacKinnon has instructed the Canada Industrial Relations Board (CIRB) to impose final, binding arbitration to resolve the ongoing labour issues between the rail union and Canada's two main railroads, the Cn and the CPKC.


In a conference held yesterday, the federal government ordered the resumption of rail operations and labour negotiations. 


In a statement, the CN announced it ended its lockout and initiated a recovery plan.


"As CN awaits the formal order from the Canada Industrial Relations Board (CIRB), the Company is making this decision to expedite the recovery of the economy," says the statement.


Meanwhile, the rail union described the new development as an action that "sidesteps" the union.


Nevertheless, it mentioned it would "review the Minister's referral and the CIRB's response, consulting with legal counsel to determine the next steps."


Original article: 22.08.2024


Rail services across Canada have come to a halt as over 9000 workers were locked out by Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC) after failing to agree on a new contract.


The Teamsters Canada Rail Conference union (TCRC) started their planned strike today, 22 August, but remains at the bargaining table with the railroads.


According to Toronto City News, the shutdown could impact nearly $1 billion in daily goods traffic.


Key issues in the negotiations include wages and scheduling. The TCRC stated that the "main obstacles to reaching an agreement remain the companies’ demands, not union proposals."


Although business organisations have called on the government to intervene and prevent further supply chain disruption, the prime minister has stressed that a negotiated agreement is the ideal solution.


Containerised goods, construction, mining, retail, energy, agriculture, and auto manufacturing are among the sectors that are anticipated to be severely affected.


The CN and the CPKC railroads had earlier announced their operational wind-down process in preparation for the strike.


The disruptions will also impact rail services at the Port of Vancouver. Marine operations remain fluid, but vessel delays and heightened anchorage demand are expected.

Source: CPAC, TCRC, Toronto City News, CN