2024-08-22 17:57:25
(OTTAWA) – Canada’s two largest railway companies should not be out of service for long. Fearing the catastrophic economic consequences of a prolonged rail paralysis and under tremendous pressure, Ottawa has imposed binding arbitration to resolve the impasse.
Federal Labor Minister Steven MacKinnon cited a “fundamental impasse” between the parties to the industrial dispute as the reason for his decision to intervene late Thursday afternoon to facilitate the resumption of train traffic – which should happen in the coming days.
“That is why I have an obligation and a responsibility to use the powers given to me under the Canada Labour Code to ensure industrial peace and provide both short-term and long-term solutions, all in the national interest,” he explained at a news conference.
Photo Patrick Doyle, The Canadian Press
Steven MacKinnon, Canada’s Minister of Labour
About 9,300 locomotive drivers, mechanics and yard employees at Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC), represented by the Teamsters Canadian Rail Conference, were left out after failing to reach an agreement on renewing their respective collective agreements by midnight on Thursday.
As of 6 p.m. Thursday, CN announced it was lifting the blockade, while CPKC said it planned to “restart” its network, which should take a few days. The Canadian Truckers Association also issued a strike notice to CPKC, strongly condemning the Trudeau government’s decision and saying it was studying its options.
Minister Steven McKinnon has spent the past few days trying to persuade the parties to reach an agreement. However, he has concluded that the deadlock is total and the conflict is likely to drag on. He said that therefore rapid intervention is necessary to protect the country’s economic interests.
More than 35,000 kilometres of rail networks from coast to coast have been paralysed by the conflict, with about $1 billion worth of freight moving through CN and CP railcars in Montreal and Calgary, respectively, according to the Canadian Railway Association.
Pressure for quick intervention is also strong. They come not only from across the country, but also from the United States, Canada’s main trading partner, which is worried about the negative impact on its economy.
drive
For CN, the end of the lockdown means the implementation of the “Canadian Network Recovery Plan.” This includes recalling employees and collecting goods from customers.
“The company has made this decision to accelerate economic recovery,” she said in a statement. “While CN is pleased that this labor dispute is over and can power the economy again, the company is disappointed that no negotiated agreement was reached at the bargaining table. »
It remains to be seen whether their employees will return to work if a recall occurs. The Canadian Truckers Association said “at this time, picket lines remain in place” but did not provide further details.
The CPKC expects the restart to take longer. It will happen once the Canada Industrial Relations Board (CIRB), Ottawa’s agency charged with helping rail companies and truckers reach an agreement, implements a directive from Minister Steven MacKinnon, a process the minister has said could take several days.
For the union, the Trudeau government’s decision constitutes outright interference, according to the union’s president, Paul Boucher. In a press release, the union confirmed that it will “consult with its lawyers” to look into handing the file over to the CIRB and plan its “next steps.” The union may therefore respond.
By resorting to binding arbitration, the government bypassed the unions dedicated to protecting rail safety.
Paul Boucher, President, Canadian Teamsters Association Rail Conference
According to him, Ottawa did so because its minority position in the House of Commons prevented it from passing back-to-work legislation “designed to appease the railroads.”
Going Further
Mr. McKinnon decided to intervene under section 107 of the Canada Labour Code.
“I have authorized the Canada Industrial Relations Board to assist the parties in resolving outstanding provisions in the collective agreement, including through final binding arbitration,” he said. “I have also authorized the board to extend the term of the current collective agreement until a new agreement is signed.”
There are several points of contention between the two sides but the availability of railway staff within both companies seems to be at the heart of the impasse.
Conductors earn about $120,000 per year, while locomotive engineers can make an average of $150,000.
In many cases, the schedules are atypical and the availability requirements are too high for truckers’ liking, which the union argues raises safety concerns regarding railroad security.
The Trudeau government also intends to study a fundamental issue. He hopes to use this opportunity to explore the reasons for the increase in labor disputes in the railway industry in recent years. CPKC and CN have already had strikes in 2022 and 2019 respectively.
“Canadians can be assured that their government will not let them suffer when political parties fail to meet their responsibilities,” Mr. McKinnon said. A negotiated agreement is and always will be the best way forward. »
Over the past week, CN and CPKC have gradually stopped accepting new cargoes in anticipation of labor unrest, a decision that the business community lamented is costing many companies.
“We are pleased with the speed with which the government has acted this time,” explained Véronique Proulx, president and CEO of the Quebec Manufacturers and Exporters Association (MEQ), in a telephone interview. This helps limit the impact that this conflict could have had if it had been prolonged. »
Ottawa Mix
Ottawa’s decision came hours after Prime Minister Justin Trudeau was away, recalling that his government was well aware of the consequences of the industrial conflict.
Photo Christinne Muschi, The Canadian Press
Justin Trudeau made a brief statement in Sherbrooke on Thursday.
To be sure, this isn’t just one company: Canada’s entire economy is at risk.
Justin Trudeau attends a press conference after touring the factory in Sherbrooke
From the first hours of the conflict, NDP leader Jagmeet Singh was quick to announce that his party would not support the Trudeau government’s bill to force a return to work.
“I have been clear all along. The NDP will not support back-to-work legislation or any disruption to the negotiating process,” he said in a written statement.
Photo by RYAN REMIORZ, Canadian Press
The NDP will not support the Trudeau government’s mandatory return to work bill.
The NDP leader visited trapped workers who were picketing in front of a CN construction site on Montreal’s West Island on Thursday. Accompanied by Montreal NDP MP Alexandre Boulerice, he joined the workers in chanting “Macho solidarity!” » as trucks drove through the busy industrial street.
The NDP leader promised them he would oppose “interference” by the Trudeau government in the dispute, including mandatory arbitration or back-to-work legislation.
Latest industrial disputes in the railway industry
- 2012: Canadian Pacific workers strike for nine days. A Conservative government law forces them back to work.
- 2015: Canadian Pacific Airlines ends a two-day strike after being threatened with back-to-work legislation.
- 2018: A strike by 3,000 CP engineers and conductors ended 16 hours after it began, with the two sides reaching a tentative four-year agreement.
- 2019: More than 3,000 CN employees go on strike for eight days.
- 2022: A 60-hour conflict disrupts CP.
Source: The Canadian Press
learn more
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- 29 billion
- Combined revenue of CN and CPKC in 2023
Source: CN and CPKC annual reports
- 9.5 billion
- Net profit of the two railway companies
Source: CN and CPKC annual reports
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