Teamsters Resist Federal Government’s Arbitration Directive Amid Rail Shutdown

The standoff between Canada’s rail workers and the federal government intensified on Friday as the Teamsters union resisted government efforts to force them back to work. The dispute, involving two of Canada’s largest rail companies—Canadian National Railway Co. (CN) and Canadian Pacific Kansas City Ltd. (CPKC)—has led to significant disruptions in freight shipments and commuter rail services across the country.

Early Friday, CN trains began rolling again as workers returned following the company’s temporary lockout. However, the situation remains tense. The Teamsters union issued a fresh 72-hour strike notice against CN shortly before 10 a.m. EDT, signaling that the conflict is far from resolved. Simultaneously, at CPKC, operations remain halted as the union mounts a legal challenge to Labour Minister Steven MacKinnon’s directive for binding arbitration, which was intended to break the deadlock.

The federal government’s intervention came after a work stoppage at both rail companies severely impacted industries ranging from agriculture to manufacturing. On Thursday, MacKinnon requested the Canada Industrial Relations Board (CIRB) to mandate binding arbitration to resolve the impasse. The board quickly summoned the parties to a meeting on Thursday night, followed by a hearing on Friday. As of 6 p.m. EDT Friday, no decision had been made.

In Calgary, the situation was marked by visible protests. Outside CPKC’s headquarters, approximately 70 picketers rallied with the support of union leaders. Francois Laporte, president of Teamsters Canada, and Sean O’Brien, president of the International Brotherhood of Teamsters, arrived in a semi-truck emblazoned with the union’s name. Laporte addressed the crowd, declaring, “This is not over. The struggle continues,” vowing that the union would continue to fight for what it views as fair working conditions.

The Teamsters’ resistance includes a plan to challenge the government’s arbitration directive in federal court if necessary. CPKC workers began striking simultaneously as the company enforced a lockout early Thursday morning, while CN workers are not yet in a legal strike position. Although CN lifted its lockout on Thursday night, the company is cautious about fully resuming operations, wary of potentially having to shut down again if the tribunal permits the union to strike during arbitration.

The labour dispute has prompted concerns from business groups and industry stakeholders, who have warned of the economic consequences. At a news conference on Thursday, MacKinnon emphasized the widespread effects of the shutdown, stating that it impacts “workers, farmers, ranchers, commuters, small businesses, miners, chemists, scientists,” and more. He added that the government remains committed to collective bargaining but had to act due to the severity of the situation.

The primary sticking points in negotiations revolve around wages, scheduling, and worker safety. The union argues that the companies are attempting to undermine protections related to rest periods, shift lengths, and scheduling, which they say jeopardizes worker safety. CN is also reportedly seeking to move some employees to remote locations for months at a time to address labour shortages, a plan the union strongly opposes.

The tone of the conflict has become increasingly acrimonious, with both sides exchanging harsh rhetoric. Sean O’Brien of the International Brotherhood of Teamsters condemned the rail companies’ lockouts, describing them as evidence of “corporate greed.” On the other hand, CN spokesperson Jonathan Abecassis accused the union of “holding Canada hostage” with their demands, stating that while CN is focused on resuming operations, the Teamsters seem intent on prolonging the strike.

CPKC expressed disappointment with the union’s challenge to the binding arbitration directive, reiterating its willingness to resume service once ordered by the CIRB. Meanwhile, the union remains firm in its stance that binding arbitration is an unacceptable solution. “The best way to have a contract is at the bargaining table. We don’t believe in letting a third party decide what’s going to be our working conditions,” said Laporte.

The government’s directive to the CIRB outlined the urgent need to secure industrial peace and protect Canada’s economic interests. MacKinnon’s instructions explicitly call for CPKC to resume operations and for workers to return to their duties, which suggests that both strikes and lockouts could be off the table following a ruling from the board. However, past cases, like the strike involving WestJet mechanics earlier this summer, indicate that ambiguity in such directives can leave room for continued job action.

For now, the union insists that the strike is ongoing. “Our people are still on strike,” said Laporte. “We’re still on the streets, so our operations will not resume. It is not going to be business as usual for both companies.”

The outcome of this dispute remains uncertain, as both sides brace for the CIRB’s decision. The impact of the rail stoppage has already been widely felt, with businesses, commuters, and consumers alike bearing the brunt of the disruptions.