BREAKING NEWS: Canada Attempts to End Economy-Threatening Railroad Lockout; Union Issues Strike Notice

On 22 August 2024, the Canadian government ordered binding arbitration to put an end to two major railroad stoppages that are the result of ongoing disputes with railroad workers. 

At midnight on 22 August, the Canadian Pacific Kansas City (CPKC) and Canadian National Railway (CN) locked out employees belonging to Teamsters Canada Rail Conference (TCRC), following inconclusive negotiation attempts between the three parties. The stoppage of both railroads has severe implications for commerce in North America, and “extend[s] to every corner of the country,” according to Labour Minister Steven MacKinnon's news conference yesterday afternoon. 

The Teamsters represent close to 10,000 Canadian rail employees, and attempted negotiations with the rail companies have centered on rest periods, scheduling, and fatigue-related safety issues.   

“Throughout this process, CN and CPKC have shown themselves willing to compromise rail safety and tear families apart to earn an extra buck,” said Paul Boucher, president of TCRC, in a press release. “Their sole focus is boosting their bottom line, even if it means jeopardizing the entire economy.”  

Government Steps Into the Fray  

MacKinnon said he is acting by requiring a third party, the Canadian Industry Relations Board (CIRB), to pursue a resumption of activities, implement binding arbitration, and extend the collective agreements to get trains moving as soon as possible.   

“These collective bargaining negotiations belong to these parties, but their effects and the impacts of their current impasse are being borne by all Canadians,” MacKinnon said during the press conference. “I am using my authorities under the Canada labor code to secure industrial peace and deliver the short- and long-term solutions that are in the national interest.” 

MacKinnon said mitigation is up to the CIRB, and the process could take up to several days before trains begin moving again. The minister also said the CIRB requested permission to implement final arbitration a week before the lockouts as negotiations remained inconclusive, which MacKinnon denied in hopes that collective bargaining would prevail, and the railroads and Teamsters would reach an agreement.   

“We wanted to give it every chance to succeed,” he said. “Unfortunately, in this case we weren’t able to.”   

Railroads: “We Believe in Collective Bargaining”  

Both CN and CPKC have released statements announcing plans to resume operations, awaiting instruction from the CIRB.  

“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,” Keith Creel, CPKC President and CEO, said in a press release.   

Just hours after announcing workers would return to work at CN Friday morning, the TCRC issued a 72-hour strike notice to CN, announcing a plan for 6,500 members to withdraw services on 26 August. The statement invited the railway to continue discussion with the union to “resolve this matter without a further work stoppage.”   

The CPKC work stoppage is currently still in effect.  

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