Mexico City.- An independent Canadian court has ordered workers at the country’s two largest railroad companies to return to work and submit to binding arbitration to resolve a dispute that has paralyzed North American supply chains.
Canada’s Industrial Relations Board on Saturday agreed to Labour Minister Steven MacKinnon’s request for arbitration, an extension of workers’ expired contracts and for the railways to resume operations “immediately.”
“The board has concluded that, in this case, it has no discretion or ability to refuse to implement, in whole or in part, the minister’s instructions or to modify their terms,” the CIRB said in its decision, signed on behalf of chairwoman Ginette Brazeau. The decision was unanimous. MacKinnon had argued that the return to work was necessary because Canadians’ livelihoods, safety and communities were at stake.
Canadian National Railway and Canadian Pacific Kansas City shut down operations on August 22 after talks with the Teamsters’ Canadian Railway Conference failed.
Following MacKinnon’s request to the board, CN trains were back on the road early Friday, but CPKC workers went on strike. The Teamsters sent a strike notice to CN for 10 a.m. Monday. The board’s decision clears the way for the railroads to fully resume operations. However, the Teamsters are likely to appeal the decision in Federal Court. The union has accused the government of violating the Charter of Rights and Freedoms by denying the right to strike and undermining the foundation on which unions work to improve wages and working conditions. The Teamsters union, which represents nearly 10,000 workers at the two railroad companies, said in an emailed statement Friday night that it would “legally abide by any decision of the CIRB.” CN, CPKC and the union did not immediately respond to a request for comment. Business groups in Canada and the U.S. had been calling on the Canadian government to intervene as the lockout disrupted their interconnected supply chain and thwarted the daily rail transport of $736 million worth of goods. Raw materials such as coal, wheat, fertilizer and lumber rely on rail to transport goods between Canadian ports and the two countries. Together, the two companies account for 80% of the country’s rail network. Talks between the two sides have stalled over scheduling issues and crew fatigue. Previous collective agreements were set to expire at the end of 2023.
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