OTTAWA — Canada’s freight rail work stoppage — the first to shut down both Canadian National and Canadian Pacific Kansas City simultaneously — is over.
Labor Minister Steven MacKinnon this afternoon ordered the railways to resume operations after sending the disputes to binding arbitration. The work stoppage began at 12:01 a.m. today after CN and CPKC locked out engineers and conductors represented by the Teamsters Canada Rail Conference, as well as CPKC rail traffic controllers.
“These collective bargaining negotiations belong to CN Rail, CPKC and TCRC alone — but their effects, and the impacts of the current impasse, are being borne by all Canadians,” MacKinnon said. “As Minister of Labour, it is my assessment that the parties are at a fundamental impasse. Therefore, it is my duty and responsibility to invoke my authorities under the Canada Labour Code to secure industrial peace and deliver the short and long-term solutions that are in the national interest.”
The existing contracts between TCRC and both railways will be extended until new agreements are signed. Negotiated agreements are always preferable, MacKinnon said, but the needs of the nation outweighed the need for a contract deal reached at the bargaining table.
“Workers, farmers, commuters and businesses rely on Canada’s railways everyday, and will continue to do so. It is the government’s duty and responsibility to ensure industrial peace in this critically vital sector,” MacKinnon said. “Thus, we will be examining why we experience repeated conflicts in the railway sector and the conditions that led to the parallel work stoppages we are seeing. Canadians can be assured that their government will not allow them to suffer when parties do not fulfill their responsibility. Especially where their livelihoods, worker safety, and communities are at stake.”
CN said in a statement this evening that it had ended its lockout as of 6 p.m. ET and initiated its recovery plan, acting in advance of a formal order from the Canada Industrial Relations Board “to expedite the recovery of the economy.”
While CN is satisfied that this labour conflict has ended and that it can get back to its role of powering the economy,” the railroad said in its statement, “the company is disappointed that a negotiated deal could not be achieved at the bargaining table despite its best efforts.”
CPKC said it is preparing to restart operations and will provide further details about the timing once it receives the CIRB’s order.
“The Canadian government has recognized the immense consequences of a railway work stoppage for the Canadian economy, North American supply chains. and all Canadians,” CPKC CEO Keith Creel said in a statement. “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.”
CN and CPKC had both sought arbitration to end the dispute, with MacKinnon last week denying a request from CN to require arbitration [see “Canada’s labor minister won’t send …,” News Wire, Aug. 15, 2024]. At the time, MacKinnon said it was the “shared responsibility” of the railroad and union to negotiate in good faith.
Transport Minister Pablo Rodriguez, reacting to MacKinnon’s move, wrote on X.com that the government “is acting to preserve the stability and certainty that our entire economy is renowned for across the world.”
Trains News Wire is awaiting reaction from the TCRC and will provide an additional update when it becomes available.
— Updated at 5:22 p.m. CT with CN statement; updated at 5:29 p.m. CT with CN statement. Trains editor David Lassen contributed to this report.
