Canada Advisory: CN/CPKC Rail Update
CIRB Orders Binding Arbitration between CN-CPKC and Teamsters Canada Rail Conference (TCRC)

The Canada Industrial Relations Board (CIRB) imposed Binding Arbitration between CN, CPKC and the Teamsters union for both railway requiring all to resume operations and Teamsters Canada Rail Conference (TCRC) employees to resume their duties.

The CIRB also ordered that no further labour stoppage, whether a lockout or strike, can occur during the arbitration process. As such, the strike notice issued by Teamsters to CN is now voided.

Meanwhile, both CPKC and CN are executing their respective plans for a safe and orderly resumption of rail service across Canada.

Canada’s Labour Minister orders end to rail work stoppage via binding arbitration

Canada’s Labor Minister, Steven MacKinnon, has ordered final binding arbitration to end a rail work stoppage involving over 9,000 workers and the country’s two class 1 railroads, Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC).

MacKinnon’s decision came after 17 hours without a new labor deal. Both railroads wanted binding arbitration, while the union, Teamsters Canada Rail Conference (TCRC), opposed it. Despite the order, a strike is still possible. The core issues include wages and work-rest rules. CN and CPKC argue that a shift to per-hour wages would benefit workers, but the union disagrees, claiming it would reduce salaries.

The rail work stoppage has wide-reaching impacts across North America, including halting cargo movement at Canadian ports and affecting U.S. railroads which are no longer accepting Canada-bound containers. Transload operations are also facing increased pressure as Canadian trucking faces a surge in demand.

U.S. railroads, including BNSF Railway and Union Pacific Railroad, expect increased business, which will put pressure on railcar supply, locomotive power, and train crews. Importers in Chicago might dray containers from Vancouver to Seattle or Tacoma for Midwest delivery using BNSF or UP.

Source: Journal of Commerce