Canada’s two biggest railways are preparing to restart operations and could begin rolling again within days.
That comes after the federal government in Ottawa intervened in the labor dispute between the Teamsters Union and the Canadian National and Canadian Pacific Kansas City railways.
The intervention came swiftly, less than 24 hours after the two railways locked out a combined 9,300 rail engineers, conductors, and yard workers, causing operations to halt.
The movement of about a billion dollars a day in goods was at risk, threatening a crucial link in the country’s supply chains and even the Canadian economy.
After being urged for days to intervene, Federal Labour Minister Steven MacKinnon finally stepped in.
"As Minister of Labor, I am using my authorities under the Canada Labour Code to secure industrial peace and deliver the short and long-term solutions that are in the national interest," said MacKinnon. "Under section 107 of the Canada Labour Code, I have directed the Canada Industrial Relations Board to assist the parties in settling the outstanding terms of their collective agreement by imposing final binding arbitration.”
MacKinnon’s announcement came 17 hours after the lockout, that ground rail movement to a halt. Teamsters Canada says it’s disappointed with what it calls a shameful decision and that it will review the minister’s intervention. But picket lines would remain in the place. It also says the government has allowed the railways to go around a union that was trying to protect rail safety.
MacKinnon still insists the government’s position is that the best outcome would be an agreement reached at the bargaining table.
Most provincial and opposition leaders supported the intervention. But one key opposition leader did not. That could spell trouble for the government of Prime Minister Justin Trudeau down the road. New Democratic Party leader Jagmeet Singh called the decision "cowardly" and "anti-worker." Trudeau’s minority government is being propped up by the New Democrats in a Confidence and Supply agreement that runs out next year — just in time for a national election.