Francois Laporte, National President, Teamsters Canada, speaks to media as picketing rail workers gather at the CPKC headquarters in Calgary, Alta., Aug. 23, 2024.Jeff McIntosh/The Canadian Press
In a highly anticipated decision, a federal labour board has ordered thousands of rail employees back to work, resolving at least temporarily a major conflict that threatened Canada’s supply chains.
Canada Industrial Relations Board imposed binding arbitration on the country’s two major railways — Canadian National Railway Co. CNR-T and Canadian Pacific Kansas City Ltd. CP-T — and Teamsters Canada Rail Conference, the union representing nearly 10,000 rail workers.
The country’s rail network shut down at midnight on Wednesday when CN locked out employees after months of separate contract talks failed to yield agreements. CPKC train crews and dispatchers went on strike at the same time.
Labour Minister Steven MacKinnon on Thursday directed the CIRB to order the railways to resume service, the workers to resume their duties and bargaining committees to enter binding arbitration.
The CIRB followed the minister’s direction in its Saturday decision, ordering CN and CPKC to resume rail service, and workers to resume their duties, effective Monday.
The board extended the terms of the previous collective agreement, which expired in December, pending binding arbitration. A case management meeting was scheduled for Thursday, Aug. 29.
Mr. MacKinnon responded to the decision in a social media post on X, saying, “I expect that railway companies and employees will resume operations at the earliest opportunity.”
CPKC said in a statement would fully comply with the CIRB’s order and is ending its lockout in order to resume rail operations in Canada by midnight on Sunday. However the company anticipates it will take several weeks for its network to fully recover. “CPKC has asked the TCRC for employees to return to work for the day shift on Sunday so that we can get the Canadian economy moving again as quickly as possible and avoid further disruption to supply chains,” it said.
CN also said it would comply with the CIRB’s orders. “While CN is disappointed an agreement could not be reached at the bargaining table, the company is satisfied that this order effectively ends the unpredictability that has been negatively impacting supply chains for months,” it said in a statement.
Christopher Monette, a spokesperson for the Teamsters, said in an e-mail Saturday that the union will comply with the CIRB decision, but also appeal the ruling in Federal Court.
In a statement, Teamsters Canada Rail Conference (TCRC) president Paul Boucher said the decision “sets a dangerous precedent” and diminishes the rights of Canadian workers. The board’s decision “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,” Mr. Boucher said.
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In its arguments in front of the CIRB, the union questioned the constitutionality of the minister’s directions and urged the board not to implement them. In its decision, the CIRB said it does not have the authority to review the minister’s directions, which rather falls under the Federal Court’s jurisdiction.
Prior to the CIRB decision, a range of industries warned of severe financial impacts from stalled supply chains amid a potentially protracted work stoppage.
The parties remained far apart in negotiations over many issues, including working conditions. The Teamsters said CPKC’s contract offers risked safety and did not address issues that included fatigue management and quality of life. The union said the railways were trying to overcome a labour shortage by making employees work longer days and farther from home.
The companies denied the union’s claims, saying their offers ensured safety, offered higher wages and included scheduling changes that would let employees spend more time with their families.
The shutdown has halted movements of grain, imported goods at the ports and chemicals. Some commuter railways near Vancouver, Toronto and Montreal that run on CPKC tracks remained suspended on Friday.
Even before the lockouts, the railways began winding down operations to ensure trains and goods would be parked safely. This meant most shipments within and destined for Canada were not being picked up. U.S. railways that interchange freight with CN and CPKC also saw a drop in cargo volumes.