MONTREAL – The Canadian government decided late last week to end work stoppages at two of Canada's largest railways, avoiding a disruption that could have caused major supply problems in Canada and the United States.
The Canadian National and CPKC rail companies locked out about 9,300 workers last Thursday after negotiations on a new collective agreement failed to produce an agreement. The rail companies were closed for about a day before the government forced arbitration.
The workers returned to their jobs, but the Teamsters union appealed the government's decision to Canada's Industrial Relations Board. That decision was upheld Saturday. The union plans to comply with the decision but will appeal again, this time in Canadian federal court, according to Freightwaves.
“This CIRB decision sets a dangerous precedent,” said Paul Boucher, president of the Teamsters Canada Rail Conference, in a statement. “It sends a message to Canadian business that all large companies have to do is shut down operations for a few hours and cause short-term economic damage, and the federal government will step in to bust a union. Canadian workers' rights were significantly curtailed today.”
Both railway companies expressed satisfaction with the ruling, which, according to CKPC, “ends months of unnecessary uncertainty and disruption”.
As a strike loomed last week, the Canadian and U.S. Chambers of Commerce said that “a suspension of rail service would have devastating consequences for Canadian businesses and families and a significant impact on the U.S. economy.”
So it seems that this strike has been averted, at least for now. That leaves one major strike that could still happen this year. About 85,000 longshoremen on the East and Gulf Coasts could go on strike if collective bargaining does not result in an agreement by September 30. As of mid-August, a successful negotiation is still a long way off.
