Federal Labor Office orders striking railway workers back to work and imposes binding arbitration
The Federal Labor Department has ordered thousands of railroad workers back to work after a bitter wage dispute led to the closure of the country’s two largest railroad companies.
The Canada Industrial Relations Board’s decision requires the parties to enter into binding arbitration following work stoppages at Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC) since Thursday morning, halting freight traffic and disrupting commuter traffic across the country.
More to follow
This is a breaking update. You can read an earlier version of this story below.
The future of an unprecedented industrial dispute at Canada’s railways hinges on a decision expected Saturday by a federal labour committee, which comes amid an ongoing, bitter wage dispute between the country’s two largest railroads and the Teamsters union, which represents thousands of their workers.
The Teamsters, Canadian National Railway and Canadian Pacific Kansas City (CPKC) were all awaiting a decision after a “marathon nine-hour hearing” before the Canada Industrial Relations Board, the union said.
“The union will comply with any decision of the CIRB in accordance with the law and is prepared to appeal in federal court if necessary,” the union said in a statement after Friday’s hearing.
A spokesman for the Canadian Industrial Relations Board said members are currently deliberating and will announce a decision later on Saturday.
With rail service disrupted by a dispute between the Teamsters Canada union and the CN and CPKC railway companies, many consumers are preparing for possible price increases due to higher transportation costs and shortages of certain items.
Freight traffic and some key commuter routes in Canada came to a halt on Thursday as CN and CPKC locked out workers after months of increasingly bitter wage negotiations failed to produce any results. It was the first time the railroads have seen simultaneous work stoppages.
Labor Minister Steven MacKinnon intervened the same day, calling on the Labor Department to submit the parties to binding arbitration and force workers to return to work while a settlement is negotiated.
MacKinnon’s order said binding arbitration could reach an agreement that would ensure “industrial peace” and protect Canada’s trade relations and sectors hard hit by the shutdown.
The board held meetings on Thursday evening and Friday and stated that it is addressing the issue “with the utmost urgency.”
Workers at CPKC began a lockout at the same time, which went into effect early Thursday morning. While CN lifted its lockout on Thursday, workers there could strike as early as Monday after the Teamsters gave a 72-hour notice on Friday.
CN said service resumed across Canada on Friday morning and no major issues have been reported so far.
“The expansion continues. We are focused on stimulating the economy and we call on the union to do the same and not hold the Canadian economy hostage,” spokesman Jonathan Abecassis said in an interview on Saturday.
CPKC operations were still suspended as of Friday.
The Teamsters say both companies are trying to loosen protections around rest periods, shift length and scheduling, putting worker safety at risk. CN also has plans to transfer some employees to distant locations for several months to fill labor gaps, the union says.
The Teamsters said the labor secretary’s proposal was unconstitutional and would “destroy the right to collective bargaining.”
