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Canadian Freight Trains could be back in operation within days after the government intervened on Thursday, compelling the country’s two major railroads to enter arbitration with their labor union. This action was taken to prevent potentially severe economic repercussions in both Canada and the U.S. if the trains remained idle for an extended period.
The government stepped in more than 16 hours after Canadian National and CPKC locked out their workers due to a stalemate in labor negotiations. Both railroads indicated that they would work to resume train operations as quickly as possible.
The union, representing 10,000 engineers, conductors, and dispatchers, reacted angrily to the order, accusing the railroads of manufacturing a crisis to force government intervention. The union also stated that it would maintain its picket lines while reviewing the government’s decision.
Government Intervenes to End Rail Lockout
The government ordered the railroads into arbitration with the Teamsters Canada Rail Conference to end the lockout, which began at 12:01 a.m. Thursday after the two sides failed to resolve their contract dispute. Labor Minister Steven MacKinnon announced the arbitration order at a news conference, expressing his expectation that Canadian freight trains would be moving again within days. Lifting the lockouts is the first step, and the arbitration process is moving quickly, with the railroads meeting with the Canada Industrial Relations Board on Thursday night. The Teamsters confirmed that they were also meeting with the board that evening.
Despite ongoing negotiations throughout Thursday, no agreement was reached, and workers continued to picket while business groups urged the government to mandate arbitration.
Paul Boucher, President of the Teamsters Canada Rail Conference, criticized the government’s quick intervention, accusing the two major railways of manufacturing the crisis, holding the country hostage, and manipulating the government to disregard the rights of working Canadians. “The Teamsters Canada Rail Conference (TCRC) is deeply disappointed by this shameful decision,” Boucher said.
Canadian Freight Trains Could Be Running Again in Days
The railroad companies, however, welcomed the government’s decision, stating that the action was necessary. “The Canadian government has recognized the immense consequences of a railway work stoppage for the Canadian economy, North American supply chains, and all Canadians,” said Keith Creel, CPKC President and CEO. “The government has acted to protect Canada’s national interest. We regret that the government had to intervene because we fundamentally believe in and respect collective bargaining; however, given the stakes for all involved, this situation required action.”
MacKinnon explained that the government wanted to allow negotiations every possible chance to succeed but ultimately determined that the economic risks were too great to let the lockouts continue. He noted that he had declined to order arbitration a week earlier.
“Canada’s economy cannot wait for an agreement that has been delayed for a very long time, especially when there is a fundamental disagreement between the parties,” MacKinnon said.
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