News / Canadian government steps in to end rail strike and force arbitration

23/08/2024

The Canadian government has stepped in to end the rail strike that only started yesterday.

Amid concerns over the effect on the wider North American economies of the rail freight network standstill, carriers Canadian Pacific Kansas City (CPKC) and Canadian National (CN) have been ordered to resume operations.

And the government announced it was forcing the operators into binding arbitration with the Teamsters Union to resolve the dispute.

Labour minister Steve MacKinnon said: “I am using my authorities under the Canada Labour Code to secure industrial peace. I assume trains will be running in days.

“We have an impasse here and that is why we have come to this decision today.”

He added that the Canada Industrial Relations Board (CIRB) would extend expired collective agreements until new ones were signed.

However, indicating that work may not resume quite so swiftly, the Teamsters said it would “review the referral [into arbitration] and… consult legal counsel to determine next steps”.

The union added: “Despite claiming to value and honour the collective bargaining process, the federal government quickly used its authority to suspend it, mere hours after an employer-imposed work stoppage.”

It also claimed the carriers had “manipulated” the government, adding: “By resorting to binding arbitration, the government has allowed CN and CPKC to sidestep a union determined to protect rail safety.”

Both rail operators had been pushing for arbitration, in which a neutral third party hears both sides of the dispute, reviews the evidence and makes a final and binding decision, but the union had refused.

The union call for industrial action against CN and CPKC followed months of unsuccessful negotiations following the expiration of labour agreements in December.

CPKC said it was “disappointed” by the union’s decision to contest the government order before resuming work, adding: “CPKC remains prepared to resume service as soon as it is ordered to do so by the CIRB.”