Bloomberg — An independent court in Canada has ordered workers at the country’s two largest railroads to return to work and submit to binding arbitration to resolve a dispute that has paralyzed North American supply chains.
The Canada Industrial Relations Board (CIRB) on Saturday agreed to Labour Minister Steven MacKinnon’s request for arbitration, as well as an extension of the workers’ expired contracts and for the railways to resume operations “immediately.”
“The board has concluded that, in this case, has no discretion or ability to refuse to implement, in whole or in part, the minister’s instructions or to modify their terms“The CIRB said in its decision, signed on behalf of President Ginette Brazeau. The decision was unanimous.
MacKinnon had argued that the return to work was necessary because Canadians’ livelihoods, safety and communities were at stake. “I hope that rail companies and employees will resume operations as soon as possible,” she said on X.
Canadian National Railway Co. (CN) and Canadian Pacific Kansas City Ltd. (CPKC) shut down operations on August 22 after talks with the Teamsters’ Canadian Railway Conference failed. Following MacKinnon’s petition to the board, CN trains began rolling again early Friday, but CPKC workers went on strike. The Teamsters issued a strike notice to CN for 10 a.m. on August 26.
The Teamsters union, which represents nearly 10,000 workers at the two railroad companies, said in an emailed statement that “will legally abide by” the decision. However, it will appeal the ruling before the Federal Court..
“This decision by the CIRB sets a dangerous precedent,” said union president Paul Boucher. “Canadian workers’ rights have been significantly undermined today.”
CN said in a press release that it is “pleased that this order effectively puts an end to the unpredictability that has been negatively impacting supply chains for months.”
CPKC said in an emailed statement that it has ended its lockout. Employees are expected to resume work at 12:01 a.m. New York time on Monday. “We are working with customers on a balanced return to normal operations,” the railroad said.
The court ordered the parties to attend a meeting on August 29 regarding the implementation of the arbitration process.
Business groups in Canada and the U.S. had been calling on the Canadian government to intervene as the lockout disrupted their interconnected supply chain and thwarted C$1 billion (US$740 million) worth of goods transported by rail each day.
Raw materials such as coal, wheat, fertilizers and lumber depend on rail to transport products between Canada’s ports and the two countries. Collectively, The two companies represent 80% of the country’s railway network..
Talks between the two sides have stalled over agreements to address scheduling and crew fatigue issues. Previous collective agreements were due to expire at the end of 2023.
With the collaboration of Monique Mulima.
Read more on Bloomberg.com
