The federal labour board has ordered thousands of rail employees back to work after a bitter contract dispute shut down the country’s two major railways.
The decision by the Canada Industrial Relations Board imposes binding arbitration on the parties following a work stoppage at Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC) that halted freight shipments and snarled commutes across the country since Thursday morning.
More to come
This is a breaking update. A previous version of this story can be read below.
The future of an unprecedented Canadian railway stoppage hinges on a decision expected Saturday from a federal labour board amid an ongoing, bitter contract dispute between the country’s two largest railway companies and the Teamsters union representing thousands of their workers.
The Teamsters, Canadian National Railway and Canadian Pacific Kansas City (CPKC) were all waiting on a decision after a “marathon nine-hour hearing” before the Canada Industrial Relations Board, the union said.
“The union will lawfully abide by any decision from the CIRB, and is prepared to file challenges in Federal Court if necessary,” the union said in a statement issued after Friday’s hearing.
A spokesperson for the Canadian Industrial Relations Board said members were deliberating and set to issue a decision later Saturday.
With rail service affected by a dispute between the Teamsters Canada union and CN and CPKC railways, many consumers are bracing for potential price increases caused by higher transportation costs as well as shortages of some items.
Freight shipments and some major commuter lines across Canada came to a standstill on Thursday when CN and CPKC locked out workers after months of increasingly acrimonious contract talks failed to yield a deal. It marked the first time there were simultaneous work stoppages at the railways.
Labour Minister Steven MacKinnon stepped in later that day, asking the labour board to send the parties to binding arbitration and to force workers back on the job while an agreement is hammered out.
MacKinnon’s directive said binding arbitration would produce a settlement to secure “industrial peace” and protect Canada’s trade relationships and sectors hit hard by the shutdown.
The board held meetings Thursday night and Friday, and has said it’s addressing the issue “with utmost urgency.”
CPKC workers went on strike at the same time a lockout came into effect early Thursday morning. While CN lifted its lockout on Thursday, workers there could strike as early as Monday after the Teamsters issued a 72-hour notice on Friday.
CN said service resumed across Canada Friday morning and no major issues had yet been reported.
“The ramp-up is continuing. We are focused on powering the economy and we call on the union to do the same and not take the Canadian economy hostage,” spokesperson Jonathan Abecassis said in an interview Saturday.
CPKC’s operations remained shut down as of Friday.
The Teamsters say both companies are attempting to weaken protections around rest periods, shift length and scheduling, jeopardizing worker safety. CN also has a plan to move some employees to far-flung locations for several months at a time to fill labour gaps, the union says.
The Teamsters have said the labour minister’s referral was unconstitutional and would “destroy collective bargaining rights.”