Canada takes swift action to end rail shutdown, CN workers to resume work

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CN employees will resume work Friday following government intervention, while the CPKC work stoppage continues pending the CIRB decision.

Canada takes swift action to end rail shutdown, CN workers to resume work
CN Intermodal train © Shutterstock

Employees of Canadian National Railway (CN) are set to resume work on Friday, according to a statement from the Teamsters union. This announcement comes shortly after the Canadian government intervened to end an unprecedented rail stoppage, Reuters reported.

The union also stated that the work stoppage at Canadian Pacific Kansas City (CPKC) would continue until the Canadian Industrial Relations Board (CIRB) issues a directive. Union and company representatives are scheduled to meet with the board on Friday morning.

Earlier on Thursday, Canada’s two major rail companies, CN and CPKC, had locked out more than 9,000 unionised workers, resulting in a simultaneous rail shutdown. Business groups warned that this could cause hundreds of millions of dollars in economic losses. On the same day, the Canadian government announced that it would request the Industrial Relations Board to issue a back-to-work order, which is expected to be issued shortly.

The independent CIRB will now consult with both the companies and the unions before issuing its directive. CN had indicated it would end its lockout at 6 p.m. ET (2200 GMT) on Thursday. CPKC stated that it was preparing to restart operations in Canada and would provide more information regarding timing once it received the CIRB’s order.

“I expect trains to be running within a few days,” Labour Minister Steven MacKinnon told reporters.

In addition to requesting a back-to-work order, MacKinnon has asked the board to initiate binding arbitration between the Teamsters union and the companies and to extend the terms of the current labour agreements until new agreements are reached.

Both parties blamed each other for the stoppage after numerous rounds of negotiations failed to produce a resolution. In a new statement released early on Friday, the Teamsters union announced on X that it had removed picket lines at CN.

CN spokesperson Jonathan Abecassis told the Canadian Broadcasting Corporation that it could take a week or more for the company to catch up on shipments.

MacKinnon’s decision represents a shift in stance by the Liberal government, led by Prime Minister Justin Trudeau, which had previously expressed a preference for the dispute to be resolved through negotiations.

“We explored every possible avenue for a negotiated settlement… but we have reached an impasse,” MacKinnon said. “That is why we have made this decision today.”