Canada Industrial Relations Board Orders Striking Railroad Employees Back to Work and Imposes Binding Arbitration

On Saturday, the Canada Industrial Relations Board (CIRB) ordered thousands of rail employees back to work to end a bitter contract dispute that shut down the country’s two major railways, The Canadian Press reported (8-24-24).

The decision from the CIRB imposes binding arbitration on all involved parties following an unprecedented dual work stoppage at Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC) that halted freight shipments and snarled commutes across the country. The CIRB said that binding arbitration is scheduled to begin on Thursday, August 29th.

The board’s decision came just two days after Labor Minister Steven MacKinnon directed the arm’s-length tribunal to begin the arbitration process, saying the parties were at an impasse and Canadian businesses and trade relationships were at stake.

The union representing the 9,300 affected workers challenged the government’s move before the board, but the tribunal said it had no authority to decide whether the minister’s directive was valid.

“The board has concluded that, in this case, it has no discretion or ability to refuse to implement, in whole or in part, the minister’s directions or to modify their terms,” wrote chairwoman Ginette Brazeau in a pair of rulings.

Brazeau ordered the two companies and the engineers, conductors, dispatchers, and yard workers concerned to resume operations starting at 12:01 AM on Monday, August 26th.

On top of ending the lockout and simultaneous strike at CPKC, the ruling effectively voids the 72-hour strike notice to CN that the union issued on Friday.

The railroad companies anticipate that a full recovery will take several weeks to accomplish, noting a phased shutdown at both railways kicked off roughly two weeks ago. As the negotiating clock ticked down, carriers became wary of leaving cargo—from meat to medicine, chlorine, and other dangerous goods—stranded on the tracks in the event of a work stoppage.

The Teamsters said they will comply with the tribunal’s decision but plan to file a court appeal, arguing it “sets a dangerous precedent.”