Canada Labor Board Orders End to Railway Work Stoppage, Reports Reuters

By Allison Lampert

MONTREAL – The Canada Industrial Relations Board has ordered a halt to work stoppages at the nation’s largest railways, effectively bringing an end to an unprecedented service disruption at the main freight carriers that threatened to impact Canada’s export-reliant economy.

The independent labor tribunal made this ruling after the Canadian government requested on Thursday that it intervene in the stalled negotiations involving over 9,000 Teamsters members and both Canadian National Railway and Canadian Pacific Kansas City.

In response to the ruling, the Teamsters stated that workers’ rights had been "significantly diminished" and announced plans to appeal the decision in federal court.

The board’s actions came after CN and CPKC locked out Teamsters members on Thursday, resulting in a simultaneous halt in rail operations that business groups warned could lead to economic losses totaling hundreds of millions of dollars.

As the world’s second-largest country by area, Canada relies heavily on rail transport for a broad array of goods and commodities.

Canadian Labour Minister Steven MacKinnon expressed on social media that he anticipates railway companies and employees will resume operations as soon as possible.

The decision will see operations at CPKC resume beginning at 12:01 AM ET on Monday, although a spokesperson for the Teamsters indicated that workers would not return earlier, despite CPKC’s request for employees to come back on Sunday.

CPKC warned that it could take several weeks for the railway network to fully recover from the disruption, followed by additional time for supply chains to stabilize.

This ruling also averted a planned strike by locomotive engineers, conductors, and other workers at CN just days after the railway had ended a prior lockout and begun restoring services. The Teamsters confirmed that CN employees would not strike following the CIRB’s decision.

In addition to ending the work stoppage, the board’s ruling included provisions for binding arbitration to help the involved parties reach new agreements while maintaining the current contracts until new terms are established.

"This decision by the CIRB sets a dangerous precedent," stated Paul Boucher, president of the Teamsters Canada Rail Conference. "It signals to large corporations that they can pause operations temporarily, inflict short-term economic harm, and receive government intervention to undermine union efforts."

A representative from CN expressed a preference for a negotiated resolution but noted that they were satisfied with the end of the labor stoppage.

The disruptions had the potential to significantly impact farmers and agricultural businesses in both Canada and the United States.

Wade Sobkowich, executive director of the Western Grain Elevator Association, indicated they had been urging the government for weeks to refer the situation to the CIRB, adding that the government was responding to the concerns of Canadians.

Mike Steenhoek, executive director of the U.S. Soy Transportation Coalition, emphasized that the Canadian government’s intervention was necessary to support farmers who depend on smooth cross-border trade.

"While we haven’t taken sides between the railroads and their workers, our priority lies with the American farmer," Steenhoek stated.

Earlier on Thursday, MacKinnon asserted that his decision to refer the matter to the CIRB would withstand any potential court challenges, owing to his extensive authority under Canada’s labor code.

The Teamsters union is seeking to have its members’ work conditions and compensation determined through bargaining, particularly regarding contentious issues with CN and CP over scheduling, work shifts, and availability. For instance, CN is proposing 12-hour shifts, a change from the current 10-hour arrangement, which the union opposes.