Canadian government steps in to end 2 railroads' work stoppage

Aug. 22 (UPI) -- Canadian National Railway and Canadian Pacific Kansas City are planning to resume operations after the government stepped in to end the lockout.

At 12:01 a.m. Thursday, the two largest rail companies in Canada locked out union workers, shutting down freight rail across Canada and affecting service to the United States. Nearly 10,000 workers were locked out.

Labor Minister Steven MacKinnon used his powers under Section 107 of the Labor Code to ask the Canada Industrial Relations Board to impose final, binding arbitration.

Also, he asked the board to order the railways to resume operations under the terms of the current collective agreements until new deals are in place.

"These collective bargaining negotiations belong to CN Rail, CPKC and TCRC alone -- but their effects, and the impacts of the current impasse, are being borne by all Canadians," MacKinnon said. "As Minister of Labor, it is my assessment that the parties are at a fundamental impasse. Therefore, it is my duty and responsibility to invoke my authorities under the Canada Labor Code to secure industrial peace and deliver the short and long-term solutions that are in the national interest."

The railways have called for binding arbitration, but the union rejected those calls.

"Workers, farmers, commuters and businesses rely on Canada's railways every day, and will continue to do so," MacKinnon said. "It is the government's duty and responsibility to ensure industrial peace in this critically vital sector. Thus, we will be examining why we experience repeated conflicts in the railway sector and the conditions that led to the parallel work stoppages we are seeing. Canadians can be assured that their government will not allow them to suffer when parties do not fulfill their responsibility. Especially where their livelihoods, worker safety and communities are at stake."

CN said in a statement said it ended the lockout at 6 p.m. Ottawa time. CPKC said it is working to restart operations.

"The Canadian government has recognized the immense consequences of a railway work stoppage for the Canadian economy, North American supply chains and all Canadians," CPKC CEO Keith Creel said in a statement. "The government has acted to protect Canada's national interest. We regret that the government had to intervene because we fundamentally believe in and respect collective bargaining; however, given the stakes for all involved, this situation required action."

The union was opposed to government intervention.

"We believe that this thing has to be settled at the bargaining table," Teamsters Canada president François Laporte told reporters in Montreal.

"We don't believe in letting a third party decide what's going to be the working conditions of these people for the next two, three, four, five years."

The Teamsters Canada Rail Conference union earlier said in a statement that despite months of good-faith bargaining the workers remain far apart from management at the railroads.

The union statement said the main obstacles to an agreement are company demands, not union worker demands.

"Throughout this process, CN and CPKC have shown themselves willing to compromise rail safety and tear families apart to earn an extra buck," TCRC President Paul Boucher's said. "The railroads don't care about farmers, small businesses, supply chains, or their own employees. Their sole focus is boosting their bottom line, even if it means jeopardizing the entire economy."

CPKC said in a statement it locked union workers out rather than continuing bargaining on a new labor contract because the railroad thinks a negotiated settlement is "not within reach."

The Teamsters said the main obstacles to reaching an agreement are the railroads pushing "to weaken protections around rest periods and scheduling, increasing the risk of fatigue-related safety issues. CN also continues to demand a forced relocation scheme, which could see workers ordered to move across the country, tearing families apart in the process."

CPKC's statement said it wants to change the work rest terms to roll back work rest rule changes implemented by Transport Canada. The railroad asserted that what it wants "does not in any way compromise safety."

"At this time, the responsible path forward for the union, the company, our customers, the Canadian economy and North American supply chains and the public interest is for TCRC and CPKC to engage in binding arbitration to resolve all outstanding disputes," CPKC said in a statement.

CPKC claimed TCRC leadership was making unrealistic demands.

Unions prefer allowing the bargaining process to continue until workers and management reach voluntary negotiated settlements rather than having a settlement imposed by arbitration.

Industry groups called for government intervention in the labor dispute but Prime Minister Justin Trudeau said the rail companies and the Teamsters must settle their differences at the bargaining table.

"My message is very straightforward. It is in the best interest of both sides to continue doing the hard work at the table to find a negotiated resolution. Millions of Canadians, of workers, of farmers, of businesses right across the country are counting on both sides to do the work and get to a resolution," Trudeau said in a statement before the work stoppage was averted.

CN railway said in a separate statement that they formally locked out their workers Thursday "after the union did not respond to another offer by CN in a final attempt to avoid a labor disruption."

The freight shutdown was expected to have cascading effects on Canada and the United States. Hundreds of billions of dollars worth of goods are transported by rail, including grain, coal, petroleum products, aviation fuel chemicals and vehicles.

Affected industries include mining, agriculture and retail.