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Ottawa intervenes on Canadian rail dispute in ordering arbitration

CN trains will be rolling soon, but CKPC -Teamsters are holding out
cpkc-corporate-photo-gallery
(Image from CPKC corporate photo gallery)

Federal Labour Minister Steve MacKinnon has intervened on the Canada-wide rail labour dispute, ordering the warring parties to binding arbitration.

“It is the government’s responsibility to ensure industrial peace in this critical, vital sector,” said MacKinnon at an Aug 22 news conference.

The minister exercised his powers under the Canada Labour Code to direct the Canada Industrial Relations Board (CIRB) to assist the parties to finally settle their collective agreements. The board is directed to extend the current agreements until new deals are signed. 

He ordered both railways to resume operations.

“Millions of Canadians rely on our railways every day. Workers, farmers, ranchers, commuters, small businesses, miners, chemists, scientists, the list goes on and the impacts cannot be understated and they extend to every corner of this country,” said MacKinnon.

Rail system shutdowns and lockouts of 9,300 rail workers began in the early hours of Aug. 22 when the railways could not reach new collective agreements with Teamsters Canada Rail Conference. There were already howls of protest by shippers and customers on both sides of the border.

MacKinnon said his government will further review why there are “repeated conflicts” in the rail sector and what factors led to the parallel work stoppages. 

Ottawa’s move had an instant impact with at least one railroad.

In ending its lockout, CN said in a statement that it is initiating a recovery plan to get trains rolling while awaiting a formal order from CIRB.

“While CN is satisfied that this labour conflict has ended and that it can get back to its role of powering the economy, the company is disappointed that a negotiated deal could not be achieved at the bargaining table despite its best efforts.”

But there will be “delays” from CPKC.

“Unfortunately, the Teamsters Canada Rail Conference (TCRC) representing the Train and Engine division and Rail Canada Traffic Controller division refused to discuss any resumption of service, “ said the railway in a news release, “and instead indicated that they wish to make submissions to challenge the constitutionality of the Minister's direction, as well as the CIRB's discretion to proceed with any order. 

A case management conference was scheduled for Friday to hear submissions by the parties.