Canada Industrial Relations Board orders binding arbitration, halting potential rail strike

Montreal-based Class I railroad carrier CN said on Saturday that it received an offer from the Canada Industrial Relations Board (CIRB), which called for imposing binding arbitration between CN and the Teamsters Canada Rail Conference (TCRC).

This followed a 72-hour strike notice sent to CN by the TCRC on Friday, August 23—after Canadian Minister of Labour Steven MacKinnon stated on Thursday, August 22 that he was using his authorities under the Canada Labour Code to secure industrial peace and to deliver historic and long-term solutions that are in the national interest and impose binding arbitration between the CN and Canada Pacific Kansas City (CPKC) and the Teamsters Canada Rail Conference (TCRC).

CN officials said that CIRB ordered that no further labor stoppage, including a lockout or strike, can occur during the arbitration process, adding the aforementioned strike notice, which TCRC issued to the Teamsters, is voided.

Related: Teamsters union serves Canadian National Railway with strike notice

“CN will comply with the order which also extends the current collective agreement until a new agreement is signed between the parties,” company officials said. “Over the last nine months, CN negotiated in good faith to reach a deal at the table. The Company consistently proposed offers with better pay, improved rest, more predictable schedules, and a voluntary mobile workforce. While CN is disappointed an agreement could not be reached at the bargaining table, the Company is satisfied that this order effectively ends the unpredictability that has been negatively impacting supply chains for months. CN remains focused on safely getting goods moving again, as efficiently as possible.”

TCRC officials did not hold back, saying it plans to appeal CIRB’s ruling in a federal court.

“This decision by the CIRB sets a dangerous precedent. It signals to Corporate Canada that large companies need only stop their operations for a few hours, inflict short-term economic pain, and the federal government will step in to break a union. The rights of Canadian workers have been significantly diminished today,” said Paul Boucher, president of the Teamsters Canada Rail Conference.

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