Ottawa moves quickly to limit rail disruption in Canada

The Canadian government intervened quickly to resolve the rail dispute, prevent strikes and minimize supply chain disruptions.

CN rail trains

Source: The Canadian Press/Nathan Denette

Canada's federal government has moved quickly to intervene in the country's rail dispute to limit disruption to supply chains in both Canada and northern US states, after rail companies locked down workers yesterday.

Canadian National (CN) and Canadian Pacific Kansas City (CPKC) railways were disrupted as 9,000 unionized rail workers rejected offers from the rail companies.

But with concerns that a prolonged dispute could cost North American shippers millions of dollars, the Canadian government has stepped in, with Labour Minister Steven MacKinnon saying he has assessed that the parties are at a "fundamental impasse".

Canada's Labour Relations Act allows the minister to direct the Canada Industrial Relations Board (CIRB) to resolve disputes between parties over collective agreements through final binding arbitration.

CN ended its curfew at 6 p.m. on August 22 and immediately began its recovery plan.

A CN statement said: "As CN awaits the formal order from the CIRB, the Company is making this decision to expedite the recovery of the economy."

"I assume that the trains will be running within days," MacKinnon told reporters.

Meanwhile, CPKC said it is preparing to restart operations and more specific details on timing will be provided once it receives the CIRB order.

“The Canadian government has recognised the immense consequences of a railway work stoppage for the Canadian economy, North American supply chains and all Canadians.” said Keith Creel, CPKC President and CEO.

“The government has acted to protect Canada’s national interest. 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.”

However, the union said the CPKC shutdown will continue pending orders from the CIRB. Union and company officials are scheduled to meet with the board on Friday morning.

According to the Teamsters union, workers’ right to strike has been temporarily suspended after the CIRB issued its decision to suspend the strike.

“This effectively robbed the union of leverage. Absent the threat of a work stoppage, neither company had been willing to compromise or show any flexibility in their demands,” the Teamsters said.

The union continues to claim that the main points of contention in the ongoing dispute are the company’s demands, not the union’s proposals. Both companies want concessions on issues of worker scheduling, rail safety and worker fatigue management.

Prime Minister Justin Trudeau said in an X post: “Collective bargaining is always the best way forward. When that is no longer a foreseeable option — when we are facing serious consequences to our supply chains and the workers who depend on it — governments must act.”

CN spokesperson Jonathan Abecassis told the Canadian Broadcasting Corp. that it could take the company a week or more to clear the backlog of shipments.

Source: Phaata.com (via Container-News)

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