Canada’s railroads initiate lockout

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Ports Shipping and Logistics (Commonwealth Union) – Canadian Pacific Kansas City (CPKC) announced that, following the directive issued by the Canadian Minister of Labour under section 107 of the Canada Labour Code, the Canada Industrial Relations Board (CIRB) held an urgent case management conference with CPKC. CPKC was ready to prioritize the immediate resumption of service.

However, the Teamsters Canada Rail Conference (TCRC), representing the Train and Engine division as well as the Rail Canada Traffic Controller division, declined to discuss the service resumption. Instead, they expressed their intent to challenge the constitutionality of the Minister’s directive and the CIRB’s authority to proceed with any orders. A follow-up case management conference is scheduled, to further consider submissions from both parties.

Despite the Minister’s directive for the CIRB to act swiftly, The CIRB stated that any decision on resuming service will be delayed. The CPKC indicated that they remain prepared to restart operations as soon as the CIRB issues an order.

The CPKC expressed its disappointment by this delay, which they pointed out is set to impact their ability to support the Canadian economy.

Headquartered in Calgary, Alberta, Canada, CPKC is the first and only single-line transnational railway connecting Canada, the United States, and México. It offers unparalleled access to major ports from Vancouver to Atlantic Canada, the Gulf of México, and Lázaro Cárdenas, México. Spanning approximately 20,000 route miles and employing 20,000 railroaders, CPKC delivers rail service and network reach to key markets across North America. As CPKC grows alongside its customers, it offers a comprehensive range of freight transportation services, logistics solutions, and supply chain expertise.

Paul Boucher, President, Teamsters Canada Rail Conference indicated that recently the, Federal Labour Minister MacKinnon has sent the ongoing rail negotiations to the CIRB for binding arbitration. The Teamsters Canada Rail Conference will examine the Minister’s decision and the CIRB’s response, consulting their legal advisors to decide on the next course of action. In the meantime, picket lines remain active.

“By resorting to binding arbitration, the government has allowed CN and CPKC to sidestep a union determined to protect rail safety. Despite claiming to value and honour the collective bargaining process, the federal government quickly used its authority to suspend it, mere hours after an employer-imposed work stoppage. This action mirrors their earlier interference this year, where they used the CIRB to stifle bargaining for months.”

He further pointed out that the two major railways in Canada created this crisis, held the country hostage, and pressured the government to once again ignore the rights of working-class Canadians. The Teamsters Canada Rail Conference (TCRC) is profoundly disappointed by this disgraceful decision. The government resorted to this extraordinary measure, invoking a rarely used section of the labour code, because they knew their minority couldn’t secure enough support to pass a legislated resolution that would favor the railways.

The railway system plays a vital role in Canada’s logistics industry, serving as the backbone of the nation’s transportation network. Stretching across the vast Canadian landscape, the railways connect major cities, ports, and industrial hubs, enabling the efficient movement of goods and resources across the country and beyond.

One of the primary advantages of the railway system is its ability to handle large volumes of freight over long distances. Canada’s extensive rail network, allows for the transportation of bulk commodities such as grain, coal, and lumber, as well as containerized goods and intermodal shipments. This capacity is crucial for the Canadian economy, as it supports the export of natural resources and the import of manufactured goods, contributing to the country’s trade balance and economic growth.

The railway system also enhances Canada’s supply chain resilience by providing a reliable and consistent mode of transportation. Unlike road transport, which can be disrupted by traffic congestion, accidents, or adverse weather conditions, rail transport operates on a dedicated right-of-way. Any disruption to the rail service by a strike or lockout could have devastating effects across North America.

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