TORONTO (ICIS)–The Canada Industrial Relations Board (CIRB) on August 24 ordered Canada’s two freight railways and approximately 9,300 unionized workers to resume rail operations on August 26 at 12:01 a.m. Eastern Time.
Freight traffic on both Canadian National (CN) and Canadian Pacific Kansas City (CPKC) was suspended on Thursday, August 22, amid a lengthy industrial dispute.
With this order, the CIRB is following the instructions of the Canadian Federal Minister of Labour, which he issued shortly after the shutdown began.
The dispute between the railway company and the employees will be settled through binding arbitration in accordance with the minister’s instructions, the CIRB said.
The board explained that “the current circumstances and the impact of work stoppages at Canada’s two largest railroads” were reasons for its decision. The board will provide a more detailed explanation later, it said.
TRADE UNION, RAILWAYS WILL FOLLOW
The Teamsters Canada Rail Conference (TCRC) union and the railway company said they would comply with the panel’s decision.
CPKC asked workers to return to work on Sunday, August 25, for the day shift to restore service as soon as possible and avoid further disruption to supply chains.
TCRC added that while it would abide by the CIRB’s decision, it would appeal the ruling.
In Canada’s chemical industry, the Chemistry Industry Association of Canada (CIAC) said experience has shown that for every day of a rail disruption, it can take three days or more for operations to resume once labor problems have been resolved.
CIAC is particularly concerned about the supply of chlorine and derivatives for drinking water treatment during rail disruptions. For safety reasons, chlorine can only be transported by rail.
Although the closure of the railway line began on August 22, the railway companies had already stopped accepting chlorine and other hazardous substances before that date. The interruption of rail operations sparked fears that Canadian chlorine plants would have to reduce or completely cease production.
Chemical producers based in Canada rely on rail to deliver more than 70% of their products, and some even use rail exclusively.
About 80 percent of Canada’s chemical production is exported, and about 80 percent of those exports go to the United States, according to CIAC.
(Map by Miguel Rodriguez Fernandez)
Meanwhile, LyondellBasell declared force majeure for all rail freight shipments to Canada and industrial chemicals manufacturer Chemtrade Logistics warned of the impact of the rail disruption on its financial results.
The following table from the American Association of Railroads (AAR) shows Canadian freight rail traffic, including chemicals, for the week ending August 17 and the first 33 weeks of 2024:
Additional reporting by Adam Yanelli and Nurluqman Suratman
