Canada moves quickly to end rail shutdown, sees trains running soon

OTTAWA -The Canadian government moved quickly on Thursday to end an unprecedented rail stoppage, announcing it would ask the country’s industrial relations board to issue a back-to-work order that should come soon.

Canada’s top two railroads, Canadian National Railway and Canadian Pacific Kansas City, had locked out more than 9,000 unionized workers earlier in the day, triggering a simultaneous rail stoppage that business groups said could inflict hundreds of millions of dollars in economic damage.

The relations board, which is independent, will now consult the companies and union before issuing an order. CN said it would end its lockout Thursday at 6 p.m. ET .

“I assume that the trains will be running within days,” Labour Minister Steven MacKinnon told reporters.

As well as requesting a back-to-work order, MacKinnon asked the board to start a process of binding arbitration between the Teamsters union and the companies.

The sides blamed each other for the stoppage after multiple rounds of talks failed to yield a deal. The union and CPKC were not immediately available for comment.

CN spokesperson Jonathan Abecassis told the Canadian Broadcasting Corp that it could take the company a week or more to catch up on shipments.

MacKinnon’s decision marked a change of mind by the Liberal government of Prime Minister Justin Trudeau, which had said it wanted to see the matter settled at the bargaining table.

“We gave negotiations every possible opportunity to succeed … but we have an impasse here,” said MacKinnon.

“And that is why we have come to this decision today.”

RELIANT ON RAIL

Business groups and companies had demanded the government act. Trudeau said earlier in the day that the stoppage would soon have an impact across the country.

Canada is the world’s second-largest country by area and relies heavily on trains to transport a wide range of commodities and industrial goods. Its economy is heavily integrated with that of the United States, meaning a stoppage would roil North American supply chains.

The rail companies previously said they were forced into the lockouts to avoid strikes at short notice. They said they had bargained in good faith and made multiple offers with better pay and working conditions.

Paul Boucher, head of the Teamsters rail union, had accused CN and CPKC of being “willing to compromise rail safety and tear families apart to earn an extra buck”.

Unions typically do not want contracts decided through arbitration as it removes their leverage from withholding labor to secure better terms.

The left-leaning New Democratic Party, which has traditionally received strong union support and props up Trudeau’s government, opposed the government’s decision.

“Justin Trudeau has just sent a message to CN, CPKC and all big corporations – being a bad boss pays off,” party leader Jagmeet Singh said in a statement.

The stoppage has crippled shipments of grain, potash and coal while also slowing the transport of petroleum products, chemicals and autos.

Tens of thousands of people who depend on certain commuter rail lines into Toronto, Vancouver and Montreal were also hit by the lockouts, since all train movement on these CPKC-owned lines has halted indefinitely.

The stoppage was largely rooted in scheduling, availability of labor, and demands for better work-life balance, according to the union and companies. It comes after Ottawa introduced new duty and rest-period rules in 2023.

CN has said it wants workers to stay on the job for up to 12 hours, in line with government norms, a change that it said would improve productivity.

But CN workers now have shifts of up to 10 hours a day, and the Teamsters do not want to relax those conditions.

This article was generated from an automated news agency feed without modifications to text.