A Canadian independent tribunal has mandated employees at the nation’s two largest railways to return to work and resolve their labor dispute through binding arbitration. The ongoing conflict has significantly impacted North American supply chains.
On Saturday, the Canada Industrial Relations Board (CIRB) approved Labor Minister Steven MacKinnon’s request for arbitration. The board also extended the expired contracts of the workers and directed the railways to restart operations immediately. In its unanimous decision, signed by Chairwoman Ginette Brazeau, the CIRB stated that it had no authority to reject or alter the minister’s directives.
MacKinnon emphasized that resuming railway services was essential to protecting Canadians’ livelihoods, safety, and communities.
Canadian National Railway Co. (CN) and Canadian Pacific Kansas City Ltd. (CPKC) halted operations on August 22 after negotiations with the Teamsters Canada Rail Conference failed. While CN resumed limited service early Friday following MacKinnon’s request, CPKC workers proceeded with a strike. The Teamsters had also issued a strike notice to CN, set to take effect on Monday at 10 a.m.
With the labor board’s ruling, full railway operations can now resume.
However, the Teamsters union, representing approximately 10,000 railway workers, may challenge the decision in Federal Court. The union contends that the government’s actions infringe on the Charter of Rights and Freedoms by restricting the right to strike, thereby undermining collective bargaining efforts for better wages and working conditions.
Despite this, the union confirmed in an emailed statement on Friday evening that it would “lawfully abide by any decision from the CIRB.”
Neither CN, CPKC, nor the union immediately responded to requests for comment.
Business groups in both Canada and the United States had urged government intervention, citing disruptions to the interconnected supply chain. The railway shutdown affected approximately C$1 billion ($736 million) worth of goods transported daily.
Industries reliant on rail transport including coal, wheat, fertilizer, and lumber faced significant setbacks, as CN and CPKC collectively manage 80% of Canada’s rail network.
