On Saturday, an arbitrator appointed to resolve a railway labor dispute in Canada ordered employees at the country’s two major railroads to return to work. This decision allowed Canadian National to continue operating trains that had been restarted on Friday after a lockout of workers. However, Canadian Pacific Kansas City was not able to restart its operations until Monday. The interruption caused by the lockouts had a significant impact on the transportation of goods between the U.S. and Canada, with smaller railroads also affected by the disruption.
The Teamsters union representing the workers announced that they would comply with the order to return to work but also stated that they would challenge the arbitration ruling. President of the Teamsters Canada Rail Conference, Paul Boucher, criticized the decision as setting a dangerous precedent and limiting the rights of Canadian workers. The Labour Minister intervened to end the lockouts due to the potential economic disaster if the railroads remained shut down, emphasizing the importance of rail service for businesses in both countries.
Canadian National expressed disappointment that an agreement could not be reached at the bargaining table but welcomed the order to end the unpredictability that had been affecting supply chains. CPKC officially ended its lockout after the decision and called on workers to return for the day shift on Sunday. Both railroads stated their intention to get the Canadian economy moving again quickly, acknowledging that it would take time to fully recover from the shutdown.
The negotiations between the railroads and the unions had broken down over issues related to worker schedules and rules designed to prevent fatigue. Both railroads had proposed changes to the compensation system, moving from payment based on miles traveled to hours worked. The unions resisted these changes over concerns about fatigue protections and job safety. While both railroads offered raises in line with industry standards, disputes also arose over issues such as temporary worker relocation and disruption to families.
In contrast to the difficulties faced by Canadian railroads, major U.S. railroads have recently reached several agreements with their unions. CSX, Norfolk Southern, and BNSF have all announced new contracts, covering more than half of their workforces. These deals will help avoid labor disputes similar to the one that nearly led to a strike for the U.S. rail industry two years ago. The Canadian railroads will continue to work through the arbitration process, with the previous contract remaining in force until new agreements are reached.
