Canada ends unprecedented rail stoppage with back-to-work order
Government orders rail workers back to work, halts economic disruption
The Canadian government swiftly acted on Thursday to end an unprecedented rail stoppage. An announcement revealed that it would ask the country’s industrial relations board to issue a back-to-work order soon. Earlier, Canadian National Railway and Canadian Pacific Kansas City had locked out over 9,000 unionised workers, leading to a rail stoppage that business groups warned could cause hundreds of millions in economic damage.
The independent relations board will consult with the companies and the union before issuing an order. CN stated it would end its lockout at 6 p.m. ET on Thursday. Labour Minister Steven MacKinnon expressed optimism, saying trains should be running within days. Alongside the back-to-work order, MacKinnon requested the board to initiate a binding arbitration process between the Teamsters union and the companies.
The stoppage stemmed from a stalemate after multiple rounds of unsuccessful negotiations, with both sides blaming each other. Neither the union nor CPKC were immediately available for comment. CN spokesperson Jonathan Abecassis mentioned it could take a week or more to catch up on shipments.
The Canadian government acted swiftly on Thursday to end an unprecedented rail stoppage, requesting the industrial relations board to issue a back-to-work order expected to arrive shortly.#Canada #RailStoppage #GovernmentAction #Transportation #LaborRelations #BreakingNews pic.twitter.com/RrwZGD5CZn
— Al-Mukhbir (@al_mukhbir) August 23, 2024
The Liberal government under Prime Minister Justin Trudeau had initially hoped for a resolution at the bargaining table. MacKinnon acknowledged the impasse, stating that every effort had been made to achieve a negotiated settlement.
Business groups and companies had urged governmental intervention, with Trudeau noting that the stoppage would soon impact the entire country. Canada relies heavily on rail for transporting commodities and industrial goods, and its economy is closely tied to that of the United States, meaning the stoppage would disrupt North American supply chains.
The rail companies argued that the lockouts were necessary to avoid sudden strikes, claiming they had negotiated in good faith and offered better pay and working conditions. Paul Boucher, head of the Teamsters rail union, accused CN and CPKC of compromising rail safety and disrupting families to increase profits. Unions generally oppose arbitration as it removes their leverage in negotiating better terms.
The left-leaning New Democratic Party, traditionally supported by unions and backing Trudeau’s government, opposed the decision. Party leader Jagmeet Singh criticised Trudeau, saying the move rewarded bad corporate behaviour.
The stoppage has severely affected shipments of grain, potash, and coal, and has also slowed the transport of petroleum products, chemicals, and autos. Tens of thousands of commuters in Toronto, Vancouver, and Montreal have been impacted, as all train movements on CPKC-owned lines halted indefinitely.
The root of the stoppage lies in issues related to scheduling, labour availability, and demands for better work-life balance. This followed new duty and rest-period rules introduced in 2023. CN wants workers to stay on the job for up to 12 hours, aligning with government norms, to boost productivity. However, Teamsters oppose extending current 10-hour shifts.
What Other Media Are Saying
- Wilton Bulletin reports that Canada’s two largest railroads, Canadian Pacific Kansas City and Canadian National, have come to a full halt due to a labor dispute, potentially disrupting U.S. supply chains and leading to a significant work stoppage.(read more)
- CBS News reports on the significant impact of Canada’s freight railroads locking out their workers, threatening the economy and supply chains, with potential government intervention looming.(read more)
- Canada moves quickly to end rail shutdown, sees trains running soon The Canadian government swiftly intervened in the unprecedented rail stoppage, requesting a back-to-work order, aiming to resolve the industrial conflict and restore train operations.(read more)
Frequently Asked Questions
Here are some common questions asked about this news
Why did the Canadian government intervene in the rail stoppage?
The government intervened to prevent economic damage and ensure the trains run again.
When will the Canadian National Railway end its lockout?
CN will end its lockout at 6 p.m. ET on Thursday.
What caused the rail stoppage in Canada?
The stoppage was due to a lockout of over 9,000 unionized workers by CN and CPKC.
What are the main issues behind the rail stoppage?
The main issues include scheduling, labor availability, and demands for better work-life balance.
How long could it take CN to catch up on shipments after the lockout ends?
It could take CN a week or more to catch up on shipments.
