Workers are here Canadian National Railway The Teamsters union said work would begin returning to work on Friday, hours after the Canadian government moved to end an unprecedented rail shutdown.
The union said the shutdown would last for Canadian Pacific Kansas City Orders from the Canadian Industrial Relations Board (CIRB) will continue to be awaited. Union and company officials are scheduled to meet with the board Friday morning.
Canada's two largest railroads, Canadian National and Canadian Pacific Kansas City, locked out more than 9,000 union workers early Thursday, triggering simultaneous rail shutdowns that business groups said could cause Economic losses of hundreds of millions of dollars.
The Canadian government announced Thursday that it will ask the country's Industrial Relations Board to issue a return-to-work order that will be issued soon.
The independent CIRB will now consult companies and unions before issuing orders.
CN had said it would end the lockdown at 6pm ET (2200GMT) on Thursday. CPKC said it is preparing to restart operations in Canada and will provide further details on the specific timing once it receives an order from the CIRB.
“I think trains will be running within a few days,” Labor Minister Steven MacKinnon told reporters.
In addition to the return-to-work order, McKinnon asked the board to initiate a binding arbitration process between the Teamsters union and the company and extend the terms of the current labor agreement until a new agreement is signed.
Both sides blamed each other for the shutdown after multiple rounds of talks failed to reach an agreement.
In a new statement early Friday morning, the Teamsters union posted on X that they had canceled pickets at CN.
CN spokesman Jonathan Abecassis told CBC it could take a week or more for the company to catch up on shipments.
MacKinnon's decision marks a change of heart by Prime Minister Justin Trudeau's Liberal government, which had said it wanted to see the matter resolved at the negotiating table.
“We gave the negotiations every opportunity to be successful … but we are now at an impasse,” MacKinnon said.
“That's why we made this decision today.”
Depend on rail
Business groups and companies are demanding government action.
Trudeau wrote on
Canada, the second largest country in the world, relies heavily on rail to transport a variety of goods and industrial products. Its economy is highly integrated with the U.S. economy, meaning shutdowns will disrupt North American supply chains.
“We are pleased that the government has responded to our calls to intervene…A prolonged shutdown would impose significant costs on Canadian businesses,” industry group Canadian Manufacturers and Exporters said in a statement.
Railway companies have previously said they were forced to stop work to avoid a short-notice strike. They said they bargained in good faith and made multiple offers for better pay and working conditions.
Paul Boucher, president of the Teamsters Rail Union, accused CN and CPKC of being “willing to compromise rail safety and tear families apart to make extra money.”
Unions generally don't want contracts decided through arbitration because it lessens the union's ability to withhold labor to get better terms.
The left-leaning NDP, which has traditionally enjoyed strong support from unions and supported the Trudeau government, opposed the government's decision.
“Justin Trudeau has just sent a message to CN, CPKC and all major corporations – there is a price to pay for being a bad boss,” party leader Tam Meat Seng said in a statement.
The outage has paralyzed shipments of grain, potash fertilizer and coal, while also slowing shipments of petroleum products, chemicals and cars.
Tens of thousands of people who rely on certain commuter rail lines to travel to Toronto, Vancouver and Montreal are also affected by the blockade, as all train operations on these CPKC-owned lines are halted indefinitely.
Unions and companies say the shutdowns stem in large part from scheduling, labor availability and demands for a better work-life balance. This comes after Ottawa introduced new duty and rest time rules in 2023.