CN, CPKC prepare to restart railways after Ottawa steps in to end stoppage

Canada’s two biggest railways say they’re preparing to get trains back on track after Ottawa intervened to end an unprecedented labour impasse that disrupted business across the country and cancelled commutes for thousands.

Canadian National Railway Co., in a statement Thursday, said it has ended the lockout of workers that began earlier in the day.

The move came shortly after Labour Minister Steven MacKinnon said he has asked the Canada Industrial Relations Board to impose binding arbitration to end the dispute and get the trains running.

CN said while it’s still waiting for the formal order from the board, “the company is making this decision (to do so now) to expedite the recovery of the economy.”

CN had earlier asked for binding arbitration and said Thursday it “is disappointed that a negotiated deal could not be achieved at the bargaining table despite its best efforts.”

Canadian Pacific Kansas City Ltd. had also asked for binding arbitration.

In a statement, it said: “Our teams are already preparing for the safe and orderly resumption of our rail network and further details about timing will be provided once we receive the CIRB’s order.”

CPKC president Keith Creel added that while they respect collective bargaining, “given the stakes for all involved, this situation required action.”

MacKinnon, exercising powers under the Labour Code, announced he has asked the board to impose final, binding arbitration in the dispute involving the Teamsters Canada Rail Conference union and the two railways.

MacKinnon said he has also asked the board to order the railways to resume operations under the terms of the current collective agreements until new deals are in place.

He said the collective bargaining process is the best way to resolve such disputes, but said the effects of the lockout are too widespread and punishing to ignore.

“Millions of Canadians rely on our railways every day,” MacKinnon said. “The impacts cannot be understated, and they extend to every corner of this country.”

MacKinnon’s comments were echoed by Prime Minister Justin Trudeau. “Collective bargaining is always the best way forward. When that is no longer a foreseeable option — when we are facing serious consequences to our supply chains and the workers who depend on it — governments must act,” Trudeau wrote on the social media platform X.

MacKinnon said the Liberal government will also examine the underlying reasons for the work stoppage. “It is the government’s responsibility to ensure industrial peace in this critically vital sector. Thus, we will be examining why we experience repeated conflicts in the railway sector and the conditions that led to the parallel work stoppages we are seeing,” he said.

This was the first time the two carriers had seen operations shut down at the same time.

The decision did not sit well with the NDP, which is helping prop up Trudeau’s Liberal minority in Parliament. NDP Leader Jagmeet Singh, in a post on X, said the decision “sends a message to big corporations like CN & CPKC: Being a bad boss pays off.”

Singh added: “Justin Trudeau’s actions are cowardly, anti-worker, and proof that he will always cave to corporate greed.”
Saskatchewan Premier Scott Moe and his Alberta counterpart Danielle Smith, whose provinces depend on rail for commodity shipments, said on X the federal government did what was necessary.

Moe called it “the appropriate action” and Smith said, “Each day this disruption continues will have costly impacts on our economy, workers, businesses, families and farmers.”

Pressure from industry and government to resolve the impasse has been mounting for weeks.

Just after midnight Thursday, the two rail carriers locked out close to 10,000 employees, including engineers, conductors, dispatchers and yard workers after the two sides failed to agree to a new contract. CPKC workers began a strike at the same time, said MacKinnon.

Each side has accused the other of failing to negotiate seriously. The union had said it did not want binding arbitration because the issues were too critical to be left to a third party.

Rail workers from Halifax to Vancouver set up picket lines Thursday morning, while sign-toting employees demonstrated outside CN’s headquarters in downtown Montreal and CPKC’s head office in Calgary.

Railways ship about $1 billion in goods each day, according to the Railway Association of Canada. Most of the 180,000-plus railcars that CN and CPKC haul weekly — moving everything from cars to clothes, computers, wheat and fertilizer — were already sidelined by Wednesday under a phased wind-down that began last week.

Credit rating agency Moody’s warned the work stoppage would cost the Canadian economy $341 million per day, with agriculture, forestry and manufacturing among the hardest-hit sectors.

The impasse also affected about 32,000 commuters in Toronto, Montreal and Vancouver whose lines run on CPKC-owned tracks. Passenger trains cannot roll along those rails without the 80 locked-out traffic controllers to dispatch them.

The Teamsters represent 6,000 CN workers and 3,300 CPKC workers. The two companies typically hammer out new deals with employees a year apart. But in 2022, CN asked for a yearlong extension to the current collective agreement, moving the bargaining periods into lockstep.

— With files from Morgan Lowrie in Montreal and Bill Graveland in Calgary