Rail service to restart after feds invoke binding arbitration

The Canadian Press / Jeff McIntosh

• By Ezra Levant

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The Trudeau government forced rail workers into binding arbitration Thursday to avoid ruin for the domestic economy. Some workers lament the move and will strike again next week.

Labour Minister Steven MacKinnon intervened on Parliament Hill to end the work stoppage. Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC), the country’s two largest railways, hold a duopoly on rail freight.

"Canadians must be assured that their government will not allow them to suffer when parties do not fill their responsibility to them at the bargaining table," he said, noting worker and community safety is at stake. 

The two railroads earlier claimed they tabled multiple offers to workers, guaranteeing better pay and working conditions. The terms were not agreed upon Thursday.

MacKinnon subsequently invoked Section 107 of the Canada Labour Code, ordering the Canada Industrial Relations Board (CIRB) to "assist the parties in settling the outstanding terms of their collective agreements by imposing final binding arbitration."

The Trudeau Liberals have ordered CN Rail and CPKC workers back to work. Labour Minister Steve MacKinnon says he's using his power "to secure industrial peace and deliver the short and long term solutions that are in the national interest."https://t.co/vD78U4ZuZQ pic.twitter.com/SppVIaMJ19

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Following the declaration, CN ended its lockout and CPKC is "preparing to restart railway operations." 

The board will oversee collective agreements until new deals are signed, and rail workers will resume work "forthwith." 

The move has been met with relief from some and sparked condemnation from others.

Business groups and companies largely supported binding arbitration in a bid to avoid further delays and save the economy hundreds of millions in revenues daily. Unions typically avoid arbitration to secure better terms.

Teamsters Canada, the railway union, said it will also be reviewing the minister's referral and the CIRB response, but that "picket lines remain in place."

Canada’s top politicians are condemning Thursday’s disruption of national rail service as an act of "sabotage." Some 10,000 rail workers hit the picket lines after multiple failed talks.

FULL STORY: https://t.co/CeBi0NCC9x pic.twitter.com/gMEc4xDJlr

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Finance Minister Chrystia Freeland told reporters Wednesday, just hours ahead of the rail shutdown, that any strike was intolerable. "It is totally unacceptable … to sabotage ourselves right now," she said. 

"What kind of contingency plans does the government have?" asked a reporter. "Our plan is for the parties to listen to Canadians," replied Freeland.

Minister MacKinnon called the parties "elusive" in contract negotiations, prompting him to respond. The government gave the negotiations "every possible opportunity to succeed," he said.

CN rail workers pushed back against the federal attempts to get them back on the job. The Teamsters union promptly issued a 72-hour strike notice Friday morning against their employer, reported CTV News.

Some 3,300 CPKC employees are also challenging the minister’s directive for binding arbitration. 

How bad could a prolonged rail strike of CN and CP-KC be? Catastrophic.

No trains, no ports, no trucks. Bare shelves could sweep the country. It's economic armageddon and has never happened in Canadian History. pic.twitter.com/HKGvle82vQ

— govt.exe is corrupt (@govt_corrupt) August 22, 2024

The impacts of a continued work stoppage would reverberate in the lives of millions of Canadians, holding up critical supply chains and complicating commutes.

The critical transport lines—when running—carry more than $1 billion worth of goods each day, according to the Railway Association of Canada.

"As minister of labour, I'm using my authorities … to secure industrial peace and deliver the short- and long-term solutions that are in the national interest," MacKinnon said.

The union expressed profound disappointment with this "shameful decision," accusing the governing Liberals of resorting to binding arbitration because they couldn't garner enough support for a legislated resolution.

The federal New Democrats called on Prime Minister Justin Trudeau to not intervene in the disputes.

Canada continues to struggle economically, and now for the first time in history, under the Liberals leadership, the country's two largest railways are on strike.

But PM Trudeau say's he's taking things "so seriously."https://t.co/vD78U502Po pic.twitter.com/hsCfO4Fcxv

— Rebel News (@RebelNewsOnline) August 22, 2024

The last time a minority Parliament passed back-to-work legislation to end a rail dispute was in 1973, reported Blacklock’s Reporter. Majority Parliaments have quickly passed back-to-work bills five times since 1950.

"Despite claiming to value and honour the collective bargaining process, the federal government quickly used its authority to suspend it, mere hours after an employer-imposed work stoppage," a statement from Teamsters Canada said.

"My message is very straightforward," Trudeau earlier told reporters. "It is in the best interests of both sides to … find a negotiated resolution.”

“Millions of Canadian workers, farmers and businesses right across the country are counting on both sides to do the work and get to a resolution."