Canadian government moves to end unprecedented rail stoppage

Rail freight workers to return to work and trains expected to start running within days after ministers intervene

Workers at Canadian National Railway will begin returning to work, the Teamsters union said, hours after the government moved to end an unprecedented rail stoppage.

The union said the stoppage at Canadian Pacific Kansas City would continue pending an order from the Canadian Industrial Relations Board (CIRB). The union and company officials were scheduled to meet the board on Friday morning.

Canada’s top two railroads, Canadian National Railway (CN) and Canadian Pacific Kansas City, had locked out more than 9,000 unionised workers on Thursday, triggering a simultaneous rail stoppage that business groups said could inflict hundreds of millions of dollars in economic damage.

The Canadian government announced on Thursday that it would ask the country’s industrial relations board to issue a back-to-work order that should come soon. The CIRB, which is independent, will consult the companies and unions before issuing an order.

CN had said it would end its lockout on Thursday at 6pm ET. CPKC said it was preparing to restart operations in Canada and further details on timing would be provided once it received the CIRB’s order.

“I assume that the trains will be running within days,” the labour minister, Steven MacKinnon, told reporters.

As well as requesting a back-to-work order, MacKinnon asked the board to start a process of binding arbitration between the Teamsters union and the companies, and extend the terms of the current labour agreements until new agreements have been signed.

The sides blamed each other for the stoppage after multiple rounds of talks failed to yield a deal.

In a statement posted on X in the early hours on Friday, the Teamsters union said it had taken down picket lines at CN.

A CN spokesperson, Jonathan Abecassis, told the Canadian Broadcasting Corp it could take the company a week or more to catch up on shipments.

MacKinnon’s decision marked a change of mind by the Liberal government of the prime minister, Justin Trudeau, which had said it wanted to see the matter settled at the bargaining table.

“We gave negotiations every possible opportunity to succeed … but we have an impasse here,” MacKinnon said. “And that is why we have come to this decision today.“

Business groups and companies had demanded action by the government.

Trudeau, in a post on X, said “collective bargaining is always the best way forward” but added governments must act when faced with serious consequences to supply chains and the workers who depended on them.

Canada is the world’s second largest country by area and relies heavily on railways to transport a wide range of commodities and industrial goods. Its economy is heavily integrated with that of the US, meaning a stoppage could disrupt North American supply chains.

The Canadian Manufacturers & Exporters, an industry group, said: “We are pleased the government has responded to our calls to intervene … A prolonged stoppage would have imposed enormous costs on Canadian business.”

The rail companies previously said they had been forced into the lockouts to avoid strikes at short notice. They said they had bargained in good faith and made multiple offers with better pay and working conditions.

Paul Boucher, the head of the Teamsters rail union, had accused CN and CPKC of being “willing to compromise rail safety and tear families apart to earn an extra buck”.

Unions typically do not want contracts decided through arbitration as it removes their leverage from withholding labour to secure better terms.

The left-leaning New Democratic party, which has traditionally received strong union support and props up Trudeau’s government, opposed the government’s decision.

“Justin Trudeau has just sent a message to CN, CPKC and all big corporations – being a bad boss pays off,” the party’s leader, Jagmeet Singh, said in a statement.

The stoppage has crippled shipments of grain, potash and coal while also slowing the transport of petroleum products, chemicals and autos.

Tens of thousands of people who depend on certain commuter rail lines into Toronto, Vancouver and Montreal were also hit by the lockouts, since all train movement on these CPKC-owned lines had halted indefinitely.

The stoppage was largely rooted in scheduling, availability of labour and demands for better work-life balance, according to the union and companies. Ottawa introduced new duty and rest-period rules in 2023.

• Canada
• Americas
• news