Canada’s Labour Minister Steven MacKinnon is intervening to end a work stoppage that saw this country’s two largest railways grind to a standstill Thursday, by forcing the parties into binding arbitration.
Announcing the major move from Parliament Hill, MacKinnon said he is invoking powers under Section 107 of the Canada Labour Code to direct the Canada Industrial Relations Board (CIRB) to “assist the parties in settling the outstanding terms of their collective agreements by imposing final binding arbitration.”
MacKinnon has also ordered the board to extend the term on the parties’ current collective agreements until new deals are signed, and is calling for operations on both railways to resume “forthwith.”
“Canadians must be assured that their government will not allow them to suffer when parties do not fill their responsibility to them at the bargaining table, especially where worker and community safety is at stake,” he said, following a day of key meetings with stakeholders.
In a first-ever simultaneous work stoppage, Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC) locked out Teamsters Canada rail workers early Thursday morning after months of failed negotiations, where safety issues, wages and what the union called a “forced relocation scheme” for workers were top issues in the talks.
The unprecedented labour dispute snarled supply chains and complicated commutes for thousands across Canada.
Contract talks continued as picket lines went up, demonstrators marched in front of the rail companies’ headquarters in Montreal and Calgary, and thousands of railcars carrying a range of goods sat parked.
At the same time, business groups, impacted industry leaders, as well as some premiers pressed the federal government to act given the critical transport lines – when running – carry more than $1 billion worth of goods each day, according to the Railway Association of Canada.
As of 4:40 p.m. ET, when MacKinnon announced he’d be stepping in, an agreement between the parties remained “elusive,” the minister – just over a month into the job – told reporters.
“Collective bargaining negotiations belong to these parties, but their effects and the impacts of the current impasse are being borne by all Canadians,” MacKinnon said. “As minister of labour, I’m using my authorities … to secure industrial peace and deliver the short- and long-term solutions that are in the national interest.”
Work begins to restart railways
It remains unclear when exactly rail operations will resume, though the minister expressed hope it will be within a few days, as the impacts both on the daily lives of millions of Canadians and the economy “cannot be understated.”
MacKinnon said the lack of clarity is because as an arms-length body, the CIRB now has to consult with the parties involved before rendering a decision on next steps.
“Obviously, I’m acting at a very early stage here and hoping they will act with similar dispatch … but again, I want to be deferential to the process that will unfold here,” he said.
In response to the federal government forcing arbitration, CN ended its lockout and said in a statement that it is now working on a “recovery plan,” as the company is “satisfied that this labour conflict has ended.”
CPKC is “preparing to restart railway operations,” but won’t reveal further details on timing, until it receives the CIRB order.
“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,” CPKC president and CEO Keith Creel said in a statement.
Both railways had called for binding arbitration, a move the union rebuffed. As of 7 p.m. ET, Teamsters Canada had yet to issue a public comment on MacKinnon’s intervention. But on social media, the union was still encouraging those on the picket lines to “stay strong.”
Prime Minister Justin Trudeau had hinted earlier that the federal government would come forward with actions before the end of the day “to make sure that the right solution is found quickly for the economy.”
“We’re taking it so seriously. The minister is engaged directly. We are not taking this lightly, obviously, because Canadians across the country are worried about it,” Trudeau said Thursday in Sherbrooke, Que., in front of a manufacturer that would have been impacted if the shutdown continued much longer.
Heading into crunch time, MacKinnon said the federal government’s position remained that the best outcome would be a negotiated agreement reached at the bargaining table, while noting the issues between the two sides were “significant.”
Singh calls Liberal move ‘cowardly’
Avoiding back-to-work legislation for now means the federal government won’t have to recall Parliament and can pause on considering where it would secure political support to pass such a bill.
NDP Leader Jagmeet Singh reiterated Thursday his party’s long-standing opposition to back-to-work legislation.
Appearing alongside some of the 9,300 engineers, conductors and yard workers who were locked out, Singh said he didn’t want to see any federal interference.
It didn’t take long for Singh – whose party continues to help prop up Trudeau’s minority – to slam the Liberals’ decision.
“Justin Trudeau has just sent a message to CN, CPKC and all big corporations—being a bad boss pays off. The Liberals’ actions are cowardly, anti-worker and proof that they will always cave to corporate greed, and Canadians will always pay for it,” he said in a statement.
While the Bloc Quebecois was noncommittal on what the federal government should do, Conservative Leader Pierre Poilievre, who is trying to court working-class voters – and backed the Liberals’ recent anti-scab law – has avoided commenting on the situation.
Ahead of MacKinnon’s announcement, former Conservative labour minister Lisa Raitt said the Conservatives didn’t need to weigh in until the federal government announced its next steps.
Saskatchewan Premier Scott Moe applauded the federal government for acting, saying that the move will “ensure our Canadian products are moving to market again.”
The federal government also announced Thursday plans to dig into the root causes behind the work stoppage.
“It is the government’s responsibility to ensure industrial peace in this critically vital sector,” MacKinnon said. “Thus, we will be examining why we experience repeated conflicts in the railway sector and the conditions that led to the parallel work stoppages we are seeing.”
This is a developing story, check back for updates…