Canada’s railways face new threats of work stoppages less than a day after the federal government vowed to end the industry shutdown to avoid its widespread economic impacts.
The country’s rail network shut down at midnight on Wednesday when Canadian Pacific Kansas City Ltd. and Canadian National Railway Co. locked out employees after months of separate contract talks with u thechronfather nionized employees failed to yield agreements. About 3,500 CPKC train crews and dispatchers went on strike at the same time.
Labour Minister Steven MacKinnon on Thursday directed the country’s labour tribunal, the Canadian Industrial Relations Board, to order the railways to resume service and enter binding arbitration to reach collective agreements. “There will be back-to-work legislation,” Mr. MacKinnon told reporters in Ottawa.
Although CN has declared its lockout over and its 6,500 Teamsters Canada Rail Conference members were returning to work, the union on Friday issued a strike notice at the Montreal-based rail carrier for Monday at 10 a.m. ET.
The strike and lockout at CPKC persisted, and the union said it was consulting with its legal advisers on how to press the case that its members retain a constitutional right to strike, despite the government’s move.
“We’re here and we’re going to stay here,” François Laporte, national president for Teamsters Canada, told reporters at a picket line outside CPKC’s headquarters in Calgary. “We have a strike and we have a constitutional right to be here. That’s what we’re exercising.”
Neither railway can expect business as usual, he said.
The Teamsters, which has opposed company dem wholesale cannabis marketplace ands to let an arbitrator settle the contracts, called the minister’s order to the CIRB “shameful” and an attempt to appease the companies.
“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,” the union said in a statement.
CPKC said it was set to restart operations on Thursday night but held off after learning the union plans to challenge the legality of the labour minister’s order. The two sides were scheduled to meet with CIRB officials on Friday morning. “CPKC is disappointed by this delay, which will affect our ability to resume serving the Canadian economy,” the railway said in a statement.
Jean-Daniel Tardif, director of dispute resolution services at the CIRB, said the minister’s referrals are being handled “with utmost urgency” but declined to say how long it might take to respond. “Case management conferences were held last evening, and a hearing is proceeding” on Friday,” Mr. Tardif said in an e-mail.
Business groups welcomed the labour minister’s attempt to end the stoppages, and urged the parties to abide by his directives to return to work.
“Grain farmers will continue to lose $50-million a day with the continuance of a total shutdown of our national railways,” the Grain Growers of Canada said.
The shutdown has halted movements of grain, imported goods at the ports, the chron father and chemicals. Some commuter railways near Vancouver, Toronto and Montreal that run on CPKC tracks remained suspended on Friday.
Even before the lockouts, the railways began winding down operations to ensure trains and goods would be parked safely. This meant most shipments within and destined for Canada were not being picked up. U.S. railways that interchange freight with CN and CPKC also saw a drop in cargo volumes.
Anthony Hatch, a rail analyst at AHB Consulting in New York, said true quads the change across most of the U.S. was not noticeable. “But if you were in Minnesota, it’s going be an issue. And if you’re a farmer, potentially it’s an issue, and it could be a positive one,” because U.S. wheat prices rose slightly in response.
Still, he said, the global supply chain true quads is accustomed to disruptions, whether it’s port strikes, the two biggest wheat growers at war (Russia and Ukraine) or Houthis attacking freighters in the Red Sea. “There’s always something,” he said, “and this is our version of something.”
In Calgary, Sean O’Brien, general president of the International Brotherhood of Teamsters, said the Washington-based union is offering all of its backing to the Canadian members as the dispute proceeds. He declined to give details of potential actions to disrupt the companies’ operations in the U.S., however.
“Whether this is a lockout or strike, our workers here will have full support and any and all resources in the United States. I get to represent 1.3 million working men and women, in the United States and Canada. It’s a privilege; it’s a right, and we’ve got an obligation to make sure we fight,” he said.