The union representing thousands of workers at the country’s two main railway companies is appealing the federal government’s decision to end a lockout that has disrupted freight traffic and commuter travel from coast to coast.
In documents filed with the Federal Court of Appeal, the Teamsters Canada union is challenging the binding arbitration directive issued to a labour board by federal Labour Minister Steven MacKinnon following the lockout of 9,300 railway workers by Canadian National Railway Company (CN) and Canadian Pacific Kansas City (CPKC).
In response to Mr. MacKinnon’s instructions, the Canada Industrial Relations Board (CIRB) ordered CN and CKPC to resume operations and employees to return to their jobs, until binding arbitration can produce new contracts.
In addition to the government’s directive, the union is contesting the court’s decisions.
Paul Boucher, president of the Teamsters Canada Rail Conference, says the action sets a “dangerous precedent” that threatens constitutional guarantees surrounding collective bargaining.
CN and CPKC, along with some industry groups, argued the decision ended months of unnecessary uncertainty and eased supply chain turbulence after the Teamsters rejected arbitration requests.
CN said arbitration is a neutral process that is “outcome agnostic” and is intended to resolve an impasse. However, the company “would have preferred a negotiated settlement,” spokeswoman Ashley Michnowski said in an email.
“However, after nine months of trying to reach a settlement, it was clear that the Teamsters were not looking for a resolution and were happy to continue to apply pressure by inflicting damage on the Canadian economy,” Michnowski continued.
Dead end
Minister MacKinnon issued the back-to-work directive less than 17 hours after the lockouts — and a strike by CPKC employees, but not CN — took effect. He argued that negotiations were at an impasse and that Canadian businesses, job security and trade relations were at stake.
Industry groups have been sounding the alarm for weeks about the economic consequences of a prolonged shutdown. To ensure no freight is stranded, CN and CPKC have been reducing operations in stages, starting nearly three weeks ago.
Last week, the movement of goods ranging from auto parts to crude oil to consumer goods, grain and potash came to a complete halt, temporarily disrupting supply chains.
More than 30,000 passengers in Montreal, Toronto and Vancouver were also unable to board passenger trains that run on CPKC-owned tracks.
At work until the end of the arbitration
In its August 24 decision, the CCRI requires that the railways continue operations and that workers remain on the job until the arbitration is completed.
The union filed four separate appeals in a Toronto court late Thursday afternoon seeking a court order “setting aside” the minister’s directions and labour court decisions involving CN and CPKC.
The applications seek to invalidate these decisions, as well as the minister’s orders to the council, arguing that the latter were “anti-statutory” – beyond the powers of his jurisdiction.
The court filing also says the board’s directives and decisions violated the union’s freedom of association under the Charter of Rights and Freedoms.
After an acrimonious few weeks, the union and railroad officials are scheduled to meet next month for the first time since the work stoppage to discuss a timetable for binding arbitration.