MacKinnon orders end to rail stoppages; Teamsters look at legal options

THE CANADIAN PRESS/ Patrick Doyle 
Labour Minister Steven MacKinnon at a press conference in Ottawa. 

Canada’s Labour Minister Steven MacKinnon has issued an order to end work stoppages at the country’s two largest rail companies, citing concerns about the economic impact of the labour dispute.

At a press conference late Thursday, MacKinnon said he’s directed the Canada Industrial Relations Board - a tribunal that administers the nation’s labour code - to impose final binding arbitration in the dispute.

Workers at Canadian Pacific Kansas City Limited (CPKC) went on strike as of 12:01 a.m. Thursday, coinciding with lockouts by both CN Rail and CPKC.

The announcement has set off a series of responses and raised hope the nation’s freight rail system will be up and running soon, but the situation remains fluid and uncertain.

1) Workers at CPKC remain on strike. The Teamsters said they are looking at their legal options. Here is their statement on the development: “The work stoppage at CPKC remains ongoing pending an order from the Canada Industrial Relations Board (CIRB). Despite the Labour Minister’s referral, there is no clear indication that the CIRB will actually order an end to the labour dispute at CPKC.”

In its statements, CPKC said it is preparing to restart railway operations as soon as the CIRB order is issued. The company expressed concern the union was planning to contest the ruling, however.

2) CN Rail, which isn’t facing strike action yet, said it’s ending its lockout of workers and has immediately initiated its “recovery plan”. Here’s its statement: “As CN awaits the formal order from the Canada Industrial Relations Board, the Company is making this decision to expedite the recovery of the economy. 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.”

The Teamsters, however, issued notice on Friday notifying CN they do plan to walk off the job at 10 a.m. on Monday morning.

At his press conference, MacKinnon said he assumed trains would be running again in days, though pointed out the CIRB is an independent body. It remains unclear how legal challenges - should they come - will alter the outcome and slow the restart, especially at CKPC where pickets remain.

The Teamsters have taken down their picket lines at CN Rail.

The Globe and Mail has written a great piece on some of the legal issues involved with the order, which can be found here.

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Theophilos (Theo) Argitis

As former Ottawa Bureau Chief for Bloomberg News, Argitis brings a deep understanding of the strategic implications of the politics and policies shaping future economic and business conditions. Born in Athens and raised in Montreal, he graduated from McGill University and holds a Masters degree in economics from the University of Toronto.

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