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Monday, February 24, 2025

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Canada Ends Railway Dispute with Binding Arbitration

 

The federal government has ended the industrial dispute between two of canada most extensive railways. Which paralyzed the country and threatened vital supply chains across North America. Labour Minister Steve McKinnon said railway operations should resume “within days” after referring both sides to final binding arbitration.

Labour Dispute Halts Railways Canada

Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC) locked out almost 9,300 workers on Thursday after failing to reach a deal with the Teamsters union. The disagreement represented a significant risk for Canada’s export economy. Approximately 75% of everything it ships to the U.S. by road goes on trains. Prolonged stoppages could have prevented vital transporting transporting commodities such as grains, beans, potash, coal and lumber.

The government Takes Over to Keep Things Running in Canada

McKinnon underlined how important the railways are in this country for employees. Farmers, commuters and businesses alike while stating that the government must ensure peace prevails in this sector, considering its significance. He added that although authorities supported collective bargaining. They had no choice but to intervene under Canada’s Labor Code to avoid disrupting essential goods transportation and trade continuity.

Arbitration Binding with Interim Measures

The task of settling disputes over collective agreements will be given to the Canada Industrial Relations Board, which will also extend current terms, allowing for immediate resumption of duties by employees concerned, pending when these issues are resolved permanently. Negotiations talks between both railroads failed late Wednesday following the expiration of last year’s date labour deals for them.

Railways and Union React

Binding arbitration was called for by CN and CPKC, too, as a means of ending their differences. Though happy with the mediation proposal made by the government having failed, a regretful negotiated settlement couldn’t be reached, according to CN. Keith Creel, who is CPKC President, acknowledged the need for intervention despite belief overall in collective bargaining while recognizing the nationhood protection role played by authorities.

Teamsters Union’s Concern on Safety

Teamsters Canada National President François Laporte stressed safety as his union’s primary concern in an interview with before arbitration was announced. He said it was essential to ensure that trains carrying goods, energy. And chemicals are operated by well-rested workers who will not compromise their safety or that of others due to fatigue. Thereby reducing risks for accidents.

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