Rail transport halted | Labor Minister imposes binding arbitration

(Ottawa) Fearing the disastrous consequences of the shutdown of rail transport in the country, Labour Minister Steven MacKinnon is using the powers granted to him by the Canada Labour Code to demand a resumption of operations by the two railway companies and is imposing binding arbitration on the various parties.




“The parties are at a fundamental impasse. That is why it is my duty and my responsibility to use the powers granted to me under the Canada Labour Code to ensure industrial peace and provide short- and long-term solutions, all in the national interest,” the minister said during a press conference late this afternoon.

Canadian National Railway Company (CN) and Canadian Pacific Kansas City (CPKC) have locked out 9,300 locomotive engineers, mechanics and yard workers after the two sides failed to agree on new labour contracts by a midnight deadline on Thursday.

PHOTO BLAIR GABLE, REUTERS ARCHIVES

Federal Labour Minister Steven MacKinnon

Minister MacKinnon has spent the last few days trying to convince the various parties to reach an agreement. But he has come to the conclusion that the impasse is complete and that this conflict could last several days. Rapid intervention was therefore necessary, he argued, in order to protect the country’s economic interests.

The pressure for rapid action was considerable. It came not only from across the country, but also from the United States, Canada’s largest trading partner.

The rail network between Canada and the United States is highly integrated and interdependent. A labour dispute in one country inevitably affects rail transport in the other.

Minister Mackinnon and his Transport colleague, Pablo Rodriguez, even spoke with their American counterparts in recent hours to reassure them of Canada’s reliability as a trading partner.

“Under section 107 of the Code, I have mandated the Canada Industrial Relations Board to assist the parties in resolving the outstanding terms of their collective agreements, including by imposing final binding arbitration. I have also mandated the Board to extend the term of the current collective agreements until new agreements are signed, as well as an immediate resumption of operations by both railway companies,” he announced.

However, the resumption of activities could take up to two days while the Canada Industrial Relations Board fulfills its obligations.

“Workers, farmers, commuters and businesses depend on Canada’s railways every day and will continue to do so. It is the government’s duty and responsibility to ensure that industrial peace is preserved in this vital sector,” he submitted.

The minister indicated that the federal government also wants to take the opportunity to examine the reasons behind the increase in labour disputes in this sector in recent years.

“Canadians can be confident that their government will not let them suffer when parties fail to live up to their responsibilities. Particularly when livelihoods, worker safety and community security are at stake,” the minister said.

“Negotiated agreements are and always will be the best way forward. Negotiation is how the strongest, most lasting agreements are reached – agreements that are good for unions and employers,” he also said.

Canada is a trading nation. Our government will do everything in its power to preserve the stability and certainty that our railways – and our economy as a whole – remain renowned around the world.

Steven MacKinnon, Federal Minister of Labour

Earlier in the day, Prime Minister Justin Trudeau suggested that his government was well aware of the consequences of this labour dispute.

PHOTO CHRISTINNE MUSCHI, THE CANADIAN PRESS

Justin Trudeau made a brief statement in Sherbrooke on Thursday.

“It’s definitely not just one company: it’s the entire Canadian economy that’s at risk,” he said. “The workers, the farmers, the small businesses,” he said after a visit to a Sherbrooke plant.

From the first hours of the conflict, NDP leader Jagmeet Singh quickly made it known that his political party would not support a Trudeau government bill forcing a return to work.

“I have always been clear. New Democrats will not support back-to-work legislation or any interference in the bargaining process,” he said in a written statement.

PHOTO RYAN REMIORZ, THE CANADIAN PRESS

The New Democrats will not support a Trudeau government bill forcing a return to work.

The NDP leader visited locked-out workers on a picket line outside a CN facility in Lachine, on Montreal’s West Island, on Thursday. Accompanied by Montreal NDP MP Alexandre Boulerice, he chanted with the workers “So-So-So-Solidarity!” as trucks drove by on a busy industrial street.

The NDP leader promised them he would fight what he called the Trudeau government’s “interference” in the dispute, including forced arbitration or back-to-work legislation.

With the Canadian Press


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