Canadian Government Steps in and Gets the Trains Back on the Rails
Following an order from Canada’s labor minister, Canadian National Railway ended its lockout at 6 p.m. ET Thursday, with workers returning to their posts today, according to a statement from the Teamsters Canada Rail Conference Friday morning.
“These collective bargaining negotiations belong to these parties, but their effects and the impacts of the current impasse are being borne by all Canadians. And there is an impasse,” Canadian Labor Minister Steven MacKinnon said at a news conference Thursday. “These collective bargaining negotiations belong to CN Rail, CPKC and TCRC alone — but their effects, and the impacts of the current impasse, are being borne by all Canadians,” MacKinnon said.
“As Minister of Labour, it is my assessment that the parties are at a fundamental impasse. Therefore, it is my duty and responsibility to invoke my authorities under the Canada Labour Code to secure industrial peace and deliver the short and long-term solutions that are in the national interest.”
Under Canada’s labor code, he has ordered the Canada Industrial Relations Board to assist with mediation. He additionally is requiring the railways to eventually resume their services, and extend their current collective bargaining agreements until new ones are signed.
CN said it lifted its lockout Thursday evening in order to “expedite the recovery of the economy,” but still has not reached a new collective bargaining agreement with Teamsters.
MacKinnon said he expects the labor board to reach a decision in the next couple days.
“Workers, farmers, commuters and businesses rely on Canada’s railways everyday, and will continue to do so. It is the government’s duty and responsibility to ensure industrial peace in this critically vital sector,” MacKinnon said. “Thus, we will be examining why we experience repeated conflicts in the railway sector and the conditions that led to the parallel work stoppages we are seeing. Canadians can be assured that their government will not allow them to suffer when parties do not fulfill their responsibility. Especially where their livelihoods, worker safety, and communities are at stake.”
In a LinkedIn post today, Paul Brashier, ITS Logistics VP of Global Supply Chain wrote:
“The situation playing out in Canada is clear as mud. If you’re a shipper that runs inland freight through Chicago, Memphis, or Detroit, I highly recommend checking bookings. You might realize that some of your shipments are held up in Canada. Contingencies and diversions are still the safest way forward. The Canadian National Railway ended its lockout. The Canadian Pacific Kansas City’s work stoppage is still ongoing with pending intervention from the Canada Industrial Relations Board. It’s not a stable situation. The time to get ahead of this is now.”
In his post he added:
Per Ari Ashe at Journal of Commerce, here’s an idea of what’s at stake:
– Around 2,750,000 ocean containers move through Canada annually
– Approximately 250,000 of those containers enter the US through inbound rail to Chicago, Memphis, or Detroit.
