The Canadian government has forced the country's two major freight railroads to arbitrate in a contract dispute with their unions, Labour Minister Steven MacKinnon said Thursday (Aug. 22).
MacKinnon announced the decision at a press conference shortly after the news agency The Associated Press released the news publicly, citing an official familiar with the situation.
MacKinnon said, “As Minister of Labour, I am using my authority under the Canada Employment Act to ensure calm in the industry and provide short-term and long-term solutions that are in the national interest.”
Both rail companies have said that once their dispute enters arbitration, trains will be able to start running again.
Canadian National and CPKC both kept their employees from work after a 12:01 a.m. deadline to resolve a dispute with the union, the Teamsters Canada Rail Conference, passed.
Talks resumed on Thursday – as workers protested outside and business groups urged the government to force arbitration.
The official spoke with The Associated Press on condition of anonymity because he was not authorized to speak publicly ahead of the announcement.
All Canadian rail freight – worth more than $730 million a day and growing to more than 375 million tonnes last year – has ground to a halt, as has rail shipments across the US border.
About 30,000 passengers in Canada were affected because their trains use CPKC lines. CPKC and Canadian National trains continue to operate in the U.S. and Mexico.
Many companies in both countries and across a range of industries rely on trains to transport their raw materials and finished products, so without regular train service, they may have to scale back or close down.
Billions of dollars worth of goods pass through rail lines between Canada and the U.S. every month, according to the U.S. Department of Transportation. (uh)
