Canadian Pacific Kansas City (CPKC) and Canadian National Railway (CN) have been ordered by the federal government to end their recent network shutdowns. The directive comes as part of a broader intervention to resolve ongoing labour disputes that have significantly impacted the nation’s transportation infrastructure this week.
Labour Minister Steve MacKinnon announced on Thursday that the government would be sending the labour disputes for final arbitration at the Canadian Industrial Relations Board (CIRB). This decision was made less than 24 hours after both railway companies locked out workers and halted operations across their networks, following failed attempts to secure new contracts with their respective unions by Wednesday’s midnight deadline.
Citing the potential risks to Canadians and the economy, MacKinnon invoked his ministerial powers to bypass the collective bargaining process. “There is no question we are at an impasse. The parties remain very far apart on the issues,” he stated. “The effects of the impasse are being borne by Canadians every day.”
While declining to provide a specific timeline for the resumption of rail services, MacKinnon expressed his expectation that trains would be running again within days. However, he emphasized the need to respect the independence of the CIRB in this process. As part of the intervention, the Labour Minister has also directed the CIRB to extend the previous collective agreements during the arbitration proceedings.
The railway shutdown has far-reaching consequences for multiple industries on both sides of the Canada-U.S. border, as well as commuters in major cities like Toronto and Vancouver that rely on CPKC tracks. Business groups have estimated that the closure of both of Canada’s freight railways could cost the economy billions of dollars. In response, various lobby associations and some provincial premiers have urged the federal government to take action.
The work stoppage has affected a wide range of sectors, including grain shipments, chlorine transportation for municipal water treatment plants, and the movement of consumer goods. More than 9,000 rail employees represented by the Teamsters Canada Rail Conference are currently off the job due to the dispute.
Both railway companies had been requesting government intervention for weeks, seeking to have their cases sent to binding arbitration. However, Ottawa initially declined these requests, insisting that the parties work towards a negotiated settlement. MacKinnon explained that the government wanted to give negotiators and mediators the opportunity to reach agreements independently. It was only when the deadlines passed and the lockouts occurred that he determined it was time for federal intervention.
