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The union representing more than 6,000 Canadian National Railway workers served a strike notice to the rail carrier Friday, rekindling fears of potential economic turmoil fueled by supply chain disruptions.
The action by the Teamsters Canada Rail Conference came the day after Canada Minister of Labour and Seniors Steven MacKinnon directed the Canada Industrial Relations Board to impose final binding arbitration to get the union to complete new labor agreements with Canadian National and Canadian Pacific Kansas City.
MacKinnon’s order followed numerous calls by business leaders and industry organizations urging government intervention to avert a shutdown of Canada’s main rail network and facilitate a quick resolution to the contract stalemate between the union and rail carriers.
Representatives from all three parties held a second day of meetings Friday with the industrial relations board. The meetings were expected to cover various issues connected to MacKinnon’s order, including procedures for Canada’s main railroads to resume operations. The railroads cannot run until this process is completed.
There is no timeline for industrial labor board action but the “union is prepared to appeal to the federal court if necessary,” Teamsters spokesperson Christopher Monette said in an email to Supply Chain Dive Friday.
A spokesperson for the industrial relations board indicated no comments could be made on the proceedings involving the union and the rail carriers in an email on Friday.
Following MacKinnon’s decision Thursday, both Canadian National and CPKC announced plans to restart operations, pending action by the industrial relations board. Canadian National ended its lockout of union workers Thursday, with the Teamsters announcing its members would return to work Friday.
However, the work stoppage at CPKC has continued, pending action by the industrial relations board, though the rail carrier also announced its intent to begin preparations to restart network operations.
The recent developments continue the months-long labor strife between the union and rail carriers, which has offered notice to shippers and carriers to implement and prepare contingencies to minimize service problems.
Despite confidence by Canadian officials that critical supplies such as fuel and water could reach the public by other transportation modes if Canada’s main rail carriers stopped running, the enthusiasm wasn’t shared by British Columbia Trucking Association CEO Dave Earle, who said “there is no possibility trucking can fill the gap of any labour disruption on railways.”
