Work Stoppages Halted at Canada’s Major Railways

By Allison Lampert

MONTREAL (Reuters) – On Saturday, the Canada Industrial Relations Board ordered an end to work stoppages affecting the country’s largest railways, alleviating a significant service disruption threatening Canada’s export-driven economy.

The independent labor tribunal made this decision after the Canadian government intervened on Thursday, seeking to resolve the deadlock in negotiations involving over 9,000 Teamsters members and the Canadian National Railway (TSX:CNR) and Canadian Pacific Kansas City (NYSE:CPKC).

The Teamsters expressed discontent with the ruling, stating that workers’ rights were “significantly diminished” and announcing plans to appeal in federal court.

This order concluded a lockout by Canadian National and Canadian Pacific, as business groups warned that this simultaneous rail stoppage could cause hundreds of millions of dollars in economic damage.

As the world’s second-largest country, Canada relies heavily on rail transport for various commodities and goods.

Canadian Labour Minister Steven MacKinnon indicated on social media that he expects railway operations to resume quickly.

The decision mandates the restart of operations at CPKC by 00:01 ET (0401 GMT) on Monday, as stated by the railway. Nevertheless, a Teamsters spokesperson mentioned employees would not return early, despite the request.

CPKC stated that the railway network might take several weeks to fully recover from the stoppage, followed by additional time for supply chains to stabilize.

This ruling prevented a planned Monday strike by locomotive engineers and conductors at CN shortly after the railway had ended a lockout and began restoring service. The Teamsters confirmed that CN workers would not strike following the CIRB’s decision.

Alongside halting the work stoppage, the labor board also imposed binding arbitration for the involved parties to negotiate new contracts, with existing agreements continuing until new ones are established.

Paul Boucher, president of the Teamsters Canada Rail Conference, criticized this ruling, asserting it sets a dangerous precedent, suggesting that large corporations can halt operations for a brief period, prompting government intervention to undermine unions.

A spokesperson from CN preferred a negotiated resolution but expressed satisfaction with the cessation of the labor stoppage.

The disruption posed significant risks to farmers and agricultural businesses in both Canada and the United States.

Wade Sobkowich, executive director of the Western Grain Elevator Association, lauded the government’s responsiveness to the urgent needs communicated by Canadians to avert economic self-harm.

Mike Steenhoek, executive director of the U.S. Soy Transportation Coalition, highlighted the significance of governmental intervention for farmers reliant on smooth cross-border trade, maintaining neutrality between railroads and workers.

MacKinnon assured that the decision to involve the CIRB is resilient to potential court challenges due to expansive authority under the labor code.

Despite ongoing conflicts regarding schedule, shift length, and availability, the Teamsters’ union advocates for their members’ working conditions and pay to be negotiated, opposing CN’s proposals for extending shifts from 10 to 12 hours.