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Federal government intervenes to end rail lockout with binding arbitration

Federal government intervenes to end rail lockout with binding arbitration - Universal Logistics Trade Alerts - August 23, 2024

The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Friday, August 23, 2024:

Railways Prepare to Restart After Federal Government Forces Binding Arbitration in Labour Dispute

Canada’s Labour Minister Steven MacKinnon is intervening to end a work stoppage that saw this country’s two largest railways grind to a standstill Thursday, by forcing the parties into binding arbitration. MacKinnon said he is invoking powers under Section 107 of the Canada Labour Code to direct the Canada Industrial Relations Board (CIRB) to “assist the parties in settling the outstanding terms of their collective agreements by imposing final binding arbitration.” MacKinnon has also ordered the board to extend the term on the parties’ current collective agreements until new deals are signed, and is calling for operations on both railways to resume “forthwith.”

Read more in an article from CTV News.

Following Order by Minister of Labour, CN Resumes Train Movements

CN announced yesterday that, effective 18:00 ET, it ended its lockout and immediately initiated its recovery plan. As CN awaits the formal order from the Canada Industrial Relations Board (CIRB), the company made this decision in order to expedite recovery of the economy.

Read more in an update from CN.

CPKC Prepares to Restart Railway Operations, Awaits CIRB Order

Canadian Pacific Kansas City (CPKC) yesterday said it is preparing to restart railway operations in Canada following the Canadian Minister of Labour’s announcement that he will exercise his authority under Section 107 of the Canada Labour Code to direct the Canada Industrial Relations Board (CIRB) to impose final binding arbitration and for railway operations to resume forthwith. CPKC will follow the order of the CIRB once it executes the Minister’s direction. Its teams are already preparing for the safe and orderly resumption of its rail network and further details about timing will be provided once it receives the CIRB’s order.

Read more in a press release from CPKC.

CPKC said in a note to customers yesterday at 7:30 pm ET that the CIRB had already convened the parties for a case management conference that evening, consistent with the Minister’s stated expectation that the CIRB execute his direction expeditiously.

CPKC Disappointed by TCRC’s Decision to Dispute Minister’s Direction to Resume Railway Operations

In a case management conference convened by the Canada Industrial Relations Board (CIRB) at 9:00 pm ET last night, the Teamsters Canada Rail Conference (TCRC) representing the Train and Engine division and Rail Canada Traffic Controller division refused to discuss resumption of service, said CPKC in a statement. The union said it will make submissions to challenge the constitutionality of the Minister’s direction, as well as the CIRB’s discretion to proceed with any order. Another case management conference is scheduled for 10:00 am ET today to further hear submissions by the parties. While the Minister directed that the CIRB proceed expeditiously, any decision by the CIRB on the resumption of service will be delayed. CPKC remains prepared to resume service as soon as it is ordered to do so by the CIRB.

Read more in a press release from CPKC.

For more information, please call David Lychek, Director – Ocean & Air Services at (905) 882-4880, ext. 1207.

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