By T. Jayani, JadeTimes News
Canada's federal government has swiftly intervened to resolve an industrial dispute that halted operations at two of the country's largest railways, jeopardizing supply chains across North America. Labour Minister Steve McKinnon announced that rail operations are expected to resume "within days" as the government has sent both parties to final binding arbitration.
The dispute involved Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC), which locked out nearly 9,300 workers on Thursday after failing to reach an agreement with the Teamsters union. With around 75% of Canada's exports ranging from grains and beans to potash, coal, and timber being shipped to the U.S. primarily by rail, a prolonged disruption could have had significant impacts.
Minister McKinnon emphasized the importance of the railways for workers, farmers, commuters, and businesses, stating that it is the government's duty to maintain industrial peace in this vital sector. Given Canada's reliance on rail transport, the government invoked its powers under the Labour Code to ensure that essential goods and trade continue to move.
The Canada Industrial Relations Board has been tasked with resolving the disputes over the collective agreements, while extending the current terms so that workers can return to work as soon as possible. The labour agreements for both railways had expired at the end of the previous year, and after months of increasingly tense negotiations, talks broke down late Wednesday.
Both CN and CPKC had requested binding arbitration. CN expressed satisfaction with the government's decision to mediate, although it was disappointed that a negotiated deal could not be reached despite its best efforts. CPKC's CEO, Keith Creel, acknowledged the government's intervention as necessary to protect Canada's national interests, though he expressed regret that the situation required government action, reaffirming the company's commitment to collective bargaining.
Before the arbitration announcement, François Laporte, National President of Teamsters Canada, highlighted safety as the union's primary concern. He stressed the importance of ensuring that trains carrying goods, energy, and chemicals are operated by workers who are well rested, safe, and not fatigued.
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