Less than 24 hours after workers were initially locked out, the federal government has ordered binding arbitration to end the railway work stoppage at CN and CPKC.
Labour Minister Steve MacKinnon said at a press conference Thursday afternoon he has instructed the Canada Industrial Relations Board to settle the contract dispute between the two railway companies and Teamsters Canada Rail Conference.
Although responsibility of reaching a settlement belongs to the railways and the union, “the impacts of the current impasse are being borne by all Canadians,” MacKinnon said.
Operations at both railways were expected to begin ‘forthwith,’ the minister added.
Following MacKinnon’s announcement of binding arbitration, CN Rail said it had formally lifted its lockout as of 6 pm ET and initiated its service recovery plan.
“While CN is satisfied that this labour conflict has ended and that it can get back to its role of powering the economy, the company is disappointed that a negotiated deal could not be achieved at the bargaining table despite its best efforts,” it said.
Likewise, CPKC said it was preparing to restart its operations.
“The Canadian government has recognized the immense consequences of a railway work stoppage for the Canadian economy, North American supply chains and all Canadians,” said Keith Creel, CPKC President and CEO. “The government has acted to protect Canada’s national interest. We regret that the government had to intervene because we fundamentally believe in and respect collective bargaining; however, given the stakes for all involved, this situation required action.
The railway shutdown was coming at the worst possible time for Canadian farmers, with the harvest now ramping up across the Prairies – a time when rail transportation is critical in moving crops from the interior to the west coast ports for export.
The Grain Growers of Canada, which represents over 65,000 farmers nationwide, said the initial impact of the dual rail stoppage would cost grain farmers over $43 million per day in the first week alone, with losses expected to climb to $50 million/day the week after and beyond if the stoppages continued.
Source : Syngenta.ca