Canada orders a third party to mediate a labor dispute between railways and employees

A dispute between two major Canadian freight railways and their union is expected to come to a close soon as the country’s labor minister has ordered a third party to mediate.

Negotiations between Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC), and the Teamsters labor union, began about a year ago but have been unsuccessful. The railways imposed lockouts on union employees Thursday as they threatened to strike.

“These collective bargaining negotiations belong to these parties, but their effects and the impacts of the current impasse are being borne by all Canadians. And there is an impasse,” Canadian Labor Minister Steven MacKinnon said at a news conference Thursday.

Under Canada’s labor code, he has ordered binding arbitration, which involves an independent party — in this case, the Canada Industrial Relations Board — assisting with mediation. He additionally is requiring the railways to eventually resume their services, and extend their current collective bargaining agreements until new ones are signed.

MacKinnon said he expects the labor board to reach a decision in the next couple days.

CN said it lifted its lockout Thursday evening in order to “expedite the recovery of the economy,” but still has not reached a new collective bargaining agreement with Teamsters.

CPKC said it was prepared to resume its operations, but claims Teamsters did not want to discuss the matter and plans to challenge the constitutionality of MacKinnon’s order.

“It is the government’s responsibility to ensure industrial peace in this critically vital sector,” MacKinnon said. “Thus we will be examining why we experienced repeated conflicts in the railway sector and the conditions that led to the parallel work stoppages we are seeing.”

Teamsters, which represents 10,000 employees at the railways, said, “The main obstacles to reaching an agreement remain the companies’ demands, not union proposals.”

The union is accusing the railways of undermining employees’ protections surrounding their schedules and breaks, as well as trying to relocate several workers.

CN said in a series of offers to Teamsters, it has proposed employees work less hours in a month, increased wages, including 65 Canadian dollars (US$47.80) an hour for conductors and 75 Canadian dollars (US$55.20) an hour for locomotive engineers, improved safety measures and job security. It said Teamsters has either denied or not responded to their offers.

CPKC said it has presented higher wages, increased shift differentials and other items that have been denied by the union.

“CPKC has bargained in good faith, but despite our best efforts, it is clear that a negotiated outcome with the [Teamsters] is not within reach,” the company said.” The [Teamsters] leadership continues to make unrealistic demands that would fundamentally impair the railway’s ability to serve our customers with a reliable and cost-competitive transportation service.”

MacKinnon said he denied a request for binding arbitration last week, as he wanted to give the parties an opportunity to work it out among themselves and thought there would be more progress.

He added he has gotten helpful advice from several U.S. stakeholders and businesses about how to handle the situation, and that their relationships remain strong.

MacKinnon stressed the effects a work stoppage can have on the Canadian economy, as the nation’s commuters, businesses, farmers and more rely on the railways.

“It’s not my job to pick sides here, we’re interested solely in making sure that labor relations in this country remain on a sure footing and that this very unusual situation, where we have two national railways who have suspended operations that that situation not be prolonged unduly,” he said.

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