Canadian business body calls for longer term solution to strike risk
Some of the Canadian trains that were halted by industrial action this week will be running again Friday.
Thousands of workers at Canadian Pacific and Canadian National were locked out just after midnight Thursday amid a dispute with the Teamsters Canada Rail Conference union over pay and conditions. But Ottawa stepped in to direct the Canada Industrial Relations Board to impose binding arbitration on the two employers and the union.
“I assume that the trains will be running within days. But I want to be deferential to the process that will unfold here,” said Labor Minister Steven MacKinnon.
Later on Thursday, Canadian National took its own decision to get operations running again, issuing a statement at 6pm ET that it had ended the lockout and initiated its recovery plan:
“As CN awaits the formal order from the Canada Industrial Relations Board the Company is making this decision to expedite the recovery of the economy. While CN is satisfied that this labour conflict has ended and that it can get back to its role of powering the economy, the Company is disappointed that a negotiated deal could not be achieved at the bargaining table despite its best efforts.”
However, Canadian Pacific is waiting until the CRIB process completes, and issued the following statement:
“CPKC will follow the order of the CIRB once it executes the Minister’s direction. Our teams are already preparing for the safe and orderly resumption of our rail network and further details about timing will be provided once we receive the CIRB’s order.”
“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.”
In response to the development, the Teamsters union said:
“The lockout at CN now over, the Teamsters Canada Rail Conference has taken down picket lines at CN. Workers will begin returning to work on Friday. The work stoppage at CPKC remains ongoing pending an order from the CIRB. Despite the Labour Minister’s referral, there is no clear indication that the CIRB will actually order an end to the labour dispute at CPKC.”
Business disruption
Shutting down operations at the two rail networks that account for around 80% of Canada’s rail network comes with significant economic cost. Moody’s calculates a two-week shutdown could cut almost $5 billion in nominal GDP.
The Canadian Federation of Independent Business says that the work stoppage will “negatively affect shipments of raw materials and goods essential for small business operations, but it will also lead to a decreased on-shelf availability of consumer products, including grocery and drugstore essentials and even baby formula,” as well as impacting millions of commuters.
With trucking capacity providing little room for an alternative and businesses already struggling from the challenges of recent years.
“Longer term, Canada needs a better way of addressing labour disputes for critical supply chain industry players,” said Dan Kelly, President and CEO, CFIB
