Canadian Rail Strike Averted

Just 16 hours after Canada’s two primary railway freight lines locked out Teamster Union employees on Thursday, Federal Labor Minister Steve MacKinnon stepped in to order binding arbitration on the parties involved.  For some weeks ahead of the deadline, management at both railways had been asking for binding arbitration, while the union had rejected government interference.

MacKinnon announced that he is invoking powers under the Canada Labor Code to direct the Canada Industrial Relations Board to settle the outstanding terms of their collective agreements by imposing final binding arbitration.  Canadian National and Canadian Pacific Kansas City railways which control the country’s freight rail network, had shut down operations just before midnight on Wednesday, and 9,300 Canadian Teamster employees had begun to set up their strike lines.  But early on Thursday afternoon, MacKinnon said there was just too much potential economic damage.

“The impacts of the current impasse are being borne by all Canadians," he pointed out.  "We are asking the Board to direct resumption of activities and a return to work at the railways. We are asking them to begin the process of Binding Arbitration and to extend collective agreements.”

Section 107 of the Canada Labor Code allows the government to refer a labor dispute to the Canada Industrial Relations Board to find a solution.  The Teamster’s Union was not happy with the binding arbitration announcement from Ottawa.  MacKinnon said he expects a resolution ‘very quickly’ but he stressed that this is an independent process.

When asked when he thinks trains will start rolling, the Minister would only say that he expects trains to start rolling again ‘within days.’

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