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Canadian Government Orders Binding Arbitration To End Rail Shutdown

Locomotives sit idle at the Canadian Pacific Kansas City (CPKC) rail yard in Port Coquitlam, British Columbia, Monday, Aug. 19, 2024. A phased shutdown of the networks at Canadian National Railway Co.

The Canadian government has taken swift action to resolve a labor dispute that led to a shutdown of the nation's major freight railroads. The shutdown, which lasted less than 17 hours, posed a significant threat to both the US and Canadian economies.

Canadian National (CN) has resumed operations after ending the lockout of its 6,000 unionized employees. However, Canadian Pacific Kansas City (CPKC) remains shut down, with a lockout of its 3,000 unionized employees and a strike by the Teamsters union still in effect.

Despite the government's order for binding arbitration to end the dispute, the Teamsters union has indicated its intention to strike CN as well. The shutdown had the potential to disrupt various industries, including agriculture, automobiles, energy, lumber, and chemicals.

Canadian Labor Minister Steve MacKinnon intervened by ordering the Canadian Industrial Relations Board (CIRB) to impose binding arbitration and instructing the railroads and union members to return to work. However, as of midday Friday, the CIRB has yet to act.

Canadian National resumes operations after ending lockout of 6,000 unionized employees.
Canadian government swiftly resolves rail labor dispute to prevent economic impact.
Canadian Pacific Kansas City remains shut down with 3,000 unionized employees locked out.

While CN expressed satisfaction with the government's intervention, the union voiced disappointment, accusing the railroads of manipulating the situation and disregarding the rights of working-class Canadians.

Both the union and railroad officials continue to engage in discussions following MacKinnon's order. CPKC expressed disappointment over the delay caused by the union's challenge to the order, emphasizing its readiness to resume operations promptly upon the CIRB's decision.

Despite the ongoing developments, CN criticized the Teamsters' new strike notice, highlighting the potential negative impact on the economy and jobs across the country.

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