Federal Labor Minister Steve MacKinnon intervened on Thursday to impose binding arbitration on the parties involved, just sixteen hours after Canada’s two main railway freight lines locked out Teamster Union personnel. A few weeks prior to the deadline, the union had opposed government intervention, while management at both railways had been requesting binding arbitration.
MacKinnon declared that he was using his authority under the Canada Labor Code to order the Canada Industrial Relations Board to impose final, binding arbitration to address the unresolved conditions of their collective agreements.
Just before Wednesday midnight, the nation’s freight rail network was shut down by the Canadian National and Canadian Pacific Kansas City railways, and 9,300 Canadian Teamster workers started erecting strike signs.
However, MacKinnon stated early on Thursday afternoon that the potential economic harm to Canada’s economy was simply too great to permit the railway stoppage to proceed.
The Canada Labor Code’s Section 107 permits the government to send a labor dispute to the Canada Industrial Relations Board for resolution. The announcement of binding arbitration from Ottawa did not sit well with the Teamsters Union.
Though he made clear that this is an independent process, MacKinnon stated that he anticipates a conclusion “very quickly.” The Minister would only remark that he anticipates trains to resume operating “within days” when asked when he thought they would.
