Rail shutdown: Union says it will challenge Ottawa's arbitration order

Teamsters Canada Rail Conference (TCRC), the union representing workers at Canadian National Rail, issued a strike notice to CN on Friday.

Workers will be on strike at 10 am ET on Monday, the union said.

The strike notice came after CN said in a statement that they were ending the lockout, in response to federal government’s decision to impose binding arbitration in the ongoing labour dispute.

“By sidestepping the collective bargaining process and ordering binding arbitration, the federal government has undermined the foundation on which labour unions work to improve wages and working conditions for all Canadians. Bargaining is also the primary way our union fights for rail safety—all considerations that outweigh short-term economic concerns,” said TCRC President Paul Boucher said in a statement.

The statement said the CIRB is yet to make a final ruling on whether it would force binding arbitration or end any work stoppage.

In its statement on Thursday, CN said, “As CN awaits the formal order from the Canada Industrial Relations Board (CIRB), the Company is making this decision to expedite the recovery of the economy.”

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The union representing rail workers had said it is looking at options to challenge Ottawa’s decision to ask the Canada Industrial Relations Board to impose final, binding arbitration to end a shutdown at both of Canada’s largest railways.

Speaking in Ottawa less than 24 hours after thousands of unionized workers at the country’s two main railway companies were locked out, Labour Minister Steve MacKinnon said he will use his powers under the Canada Labour Code to “secure industrial peace” and impose final, binding arbitration.

He said he has also directed the Canada Industrial Relations Board to extend the term of the current collective agreement until a deal is reached, and to order a return to work.

François Laporte, national president of Teamsters Canada, said Thursday the union was speaking to its legal advisors and considering its next steps.

“We believe that the Supreme Court decision regarding our right to strike is a constitutional right. And we believe that the application of Article 107 (of the Canada Labour Code) is not valid. We are looking at our options regarding that situation,” he told reporters in Calgary on Friday.

Laporte said the union was caught off guard by MacKinnon’s announcement of binding arbitration.

“Two weeks ago he said, well, no (binding) arbitration and no back-to-work (legislation),” he said.

Laporte said they will continue to oppose arbitration by a third party.

“The best way to have a contract is at the bargaining table,” he said.

CPKC said it was unable to resume service because the union “refused to discuss any resumption of service, and instead indicated that they wish to make submissions to challenge the constitutionality of the Minister’s direction.”

“While the Minister directed that the CIRB proceed expeditiously, any decision by the CIRB on the resumption of service will be delayed. CPKC remains prepared to resume service as soon as it is ordered to do so by the CIRB,” a statement read.

Laporte said rail workers are not going to abandon the picket lines just yet.

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“We are here and we are going to stay here,” he said.

The Canadian Chamber of Commerce said it was “disappointed” in the union’s decision to challenge the binding arbitration order.

“This action will prolong the damage to our economy and jeopardize the wellbeing and livelihoods of Canadians, including union and non-union workers across multiple industries,” Perrin Beatty, president and CEO of the Canadian Chamber of Commerce, said in a statement

Dennis Darby, president and CEO of Canadian Manufacturers and Exporters, welcomed the binding arbitration order but said it would be a while before the trains ran again.

“The wind down of rail services over the last several days culminating in the full stoppage this morning has inflicted significant supply chain and operational challenges for manufacturers across the country – issues that will take days if not weeks to resolve,” he said.

However, he said it was better than a prolonged shutdown.

“A prolonged stoppage would have imposed enormous costs on Canadian business and workers,” he said.

Grain Growers of Canada, a group representing 65,000 grain producers across Canada, called on the railways and unions to resume services as soon as possible.

“For the good of Canada’s food, economic, and national security, we are calling on all parties to abide by yesterday’s directives and to work with, not against, the CIRB to resume railway service,” the group said.

For every day that the stoppage continues, the group said farmers will continue to suffer heavy losses.

“Grain farmers will continue to lose $50 million a day with the continuance of a total shutdown of our national railways. The time is now to get Canada’s railways back on track,” they said in a statement.

Speaking to Global News last week, TCRC spokesperson Christopher Monette said the negotiations were about more than just money.

“The main issues now have to do with fatigue, rest, scheduling and forced relocation. The companies want to try to make it seem that our members are all exceedingly well-paid and spoiled. But the reality now is that these are billion-dollar corporations, and our members are giving over 80 hours a week of their lives to these companies,” he said.