Government Takes Action in Canadian Rail Labour Dispute
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The Global Cold Chain Alliance (GCCA) is closely monitoring the recent lockout and suspension of Canadian rail services, which has come as a result of failed labour agreement negotiations between Canadian National (CN), Canadian Pacific Kansas City (CPKC), and Teamsters. This lockout is expected to have significant effects on North American supply chains.
In response to this crisis, Labour Minister Mackinnon has announced that he is using his section 107 power for three specific actions: to direct the Canadian Industrial Relations Board (CIRB) to impose final binding arbitration, to extend collective agreements, and to order the resumption of service on the railways. Although the CIRB operates as an arms-length organization, and similar orders did not end a strike during a previous airline labour dispute, Minister Mackinnon has expressed confidence that these measures will resolve the current crisis. He has stated that he expects the issue to be resolved within days.
In response to the Minister’s announcement, CN trains started moving again on Friday, August 23rd. However, the union served a 72-hour strike notice Friday morning, potentially leading to a strike on Monday, August 26. CPKC trains still remain at a standstill, though the railway has stated they are preparing to resume operations pending an order from the Canada Industrial Relations Board (CIRB). Regarding the Labour Minister’s directive for binding arbitration, the union has announced plans to challenge the constitutionality of the order. The CIRB held a hearing on Friday to consider these legal challenges and is expected to issue a ruling soon.
GCCA has joined coalition efforts to encourage the parties to stay at the negotiating table to reach an agreement. GCCA is in regular communication with Transport Canada to stay informed on the latest developments and to relay the impacts on the cold chain industry. GCCA is also fielding media inquiries to provide accurate information on how the lockout is affecting the cold chain.
