Trains were halted downtown Medicine Hat on Thursday. Eli J. Ridder/CHAT News

By Eli J. Ridder, Josh Hall

Federal government orders binding arbitration to end Canada’s railway lockout

Aug 22, 2024 | 3:58 PM

Federal labour minister Steve MacKinnon on Thursday ordered binding arbitration that will end a lockout at Canada’s two biggest rail companies and restart work on railways that came to a complete halt less than 24 hours ago.

MacKinnon asked the Canada Industrial Relations Board to order a return to work and to impose binding arbitration.

The work stoppage started last night because of a nationwide labour dispute between the Teamsters Rail Canada union and rail companies Canadian National Railway Co. and Canadian Pacific Kansas City Ltd.

The two companies locked out 9,300 engineers, conductors and yard workers — including over 200 employees in Medicine Hat — after the parties did not agree on new contracts before deadline.

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.

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Business groups had urged the government to step in with binding arbitration or back-to-work legislation, warning of massive economic consequences that could cost an estimated $341 million per day.

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.

NDP leader Jagmeet Singh said earlier on Thursday that his party wouldn’t support any interference in the bargaining process by the Liberals.

Premier Danielle Smith, and three of her cabinet ministers called for the federal government to step in earlier on Thurday.

“This stoppage will have devastating impacts on Canada’s economy, Canadian families and communities across this country,” they said, also imploring Ottawa to implement back-to-work legislation.

Alberta NDP Leader Naheed Nenshi said back-to-work legislation was not the way to go, and that an agreement had to be met in good faith.

Nenshi called Smith’s demand for such legislation, which she also made clear a week ago, “remarkably unhelpful.”

CN said it has ended its lockout of workers that began earlier today and is to immediately begin a recovery plan.

The company says while it’s awaiting a formal order from the Canada Industrial Relations Board, it made this decision in order to speed up the recovery of the economy.

It says it’s satisfied the labour conflict has ended but is disappointed a negotiated deal could not be achieved.

CPKC, meanwhile, said it’s preparing to restart operations.

It said it will provide further details about timing once it receives an order from the board to impose final binding arbitration.

— with files from the Canadian Press