Ottawa has imposed a final binding arbitration and expedited a return to work for about 9,300 railway employees of Canadian National (CN) and Canadian Pacific Kansas City (CPKC), who have been locked out since Thursday morning.
Under pressure from all sides, Justin Trudeau's government wants to prevent a major financial crisis if there is no agreement on a new collective agreement between the carriers and the Teamsters union.
“Here's the bottom line: a stoppage in the rail sector will not affect anything in the country,” federal Labor Minister Steven MacKinnon announced just before 5pm on Thursday.
A speedy recovery is expected
Citing a “fundamental impasse” in the ongoing negotiations from 2023, Minister MacKinnon directed the Canada Industrial Relations Board (CIRB) to impose binding arbitration, a process by which the parties decide to settle the negotiations once and for all with an arbitrator. .
“I have directed the council to extend the term of the current collective agreements until new agreements can be reached and to immediately resume operations for both railway companies,” added Mr. McKinnon from Ottawa.
The ball is now in CCRI's court, allowing for a quick return to work.
Asked why the special law was not passed, the minister soberly explained that Parliament was still suspended for summer vacation.
A “timid” measure
NDP Leader Jagmeet Singh didn't mince his words and called the Liberals' actions “cowardly” and “hostile to workers.”
“Justin Trudeau just sent a message to CN, CPKC and all big companies: it pays to be a bad boss,” he added in a written statement.
At an earlier press briefing in Montreal, he said his party would vote “against any measure that attacks workers, regardless of our agreement with the Liberals,” without going so far as to promise to cut ties with the government.
“I'll let Mr. Singh speak for himself,” replied Mr. McKinnon.
Véronique Proulx, CEO of Manufacturers & Exporters du Québec (MEQ), welcomed the decision with “relief.” “Having just begun, this crisis has already sent a significant shock wave to local businesses and supply chains in Quebec and Canada.”
The Teamsters union had not commented on the change in situation as of this writing early Thursday evening.
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