Teamsters challenge minister's move to resume rail service as shutdown drags on

MONTREAL -

Rail workers fought back Friday against the federal government's move to get them back on the job, with a fresh strike notice and a regulatory challenge making it unclear when most freight traffic will resume.

At Canadian National Railway Co., trains began to move again Friday morning as workers started to return -- even as the Teamsters union issued a 72-hour strike notice against CN shortly before 10 a.m. EDT.

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And at Canadian Pacific Kansas City Ltd. -- where operations remained shuttered -- the union has challenged a directive for binding arbitration issued by Labour Minister Steven MacKinnon to the country's labour board.

A work stoppage at both national railways prompted MacKinnon to ask the Canada Industrial Relations Board on Thursday to use the mechanism, aimed at resolving an impasse that has halted freight shipments and snarled commuter lines across the country.

The labour board summoned the parties to a meeting Thursday night, followed by a hearing on Friday.

The tribunal said in an email it is addressing the issue "with utmost urgency."

There was no decision yet as of about 6 p.m. EDT Friday.

In Calgary, picketers rallied outside CPKC's head office, where demonstrators received a visit Friday morning from Francois Laporte, president of Teamsters Canada.

"This is not over. I'm telling you this is not over. The struggle continues," he said to the 70-odd workers on hand.

Laporte and Sean O'Brien, president of the International Brotherhood of Teamsters -- the union represents 1.4 million members across North America -- arrived horns blaring in a black semi truck sporting "Teamsters" on the side.

"We will use our constitutional right to fight the company here," Laporte said.

The union said it is prepared to plead its case in a federal courthouse if necessary.

CPKC workers went on strike at the same time a lockout came into effect early Thursday morning. CN employees are not yet in a legal strike position.

Although CN lifted its own lockout Thursday night, the company is wary of ramping up service only to have to shut it back down -- potentially stranding cargo on the tracks -- should the tribunal rule that staff can still strike during arbitration.

Before making the binding arbitration directive, the labour minister had faced pressure to intervene from business groups, which warned of the economic fallout caused by the work stoppage and urged Ottawa to break the deadlock and kick-start freight service.

At a Thursday news conference, MacKinnon said the government remains "committed totally to collective bargaining," but that the cascading effects of the shutdown demanded action.

"Workers, farmers, ranchers, commuters, small businesses, miners, chemists, scientists ... the impacts cannot be understated and they extend to every corner of this country," he said.

The government gave the negotiations "every possible opportunity to succeed," MacKinnon added.

Each side had accused the other of failing to negotiate seriously, with wages and scheduling as key sticking points. The union had rejected binding arbitration, framing Ottawa's decision as a move to "sidestep" its choice.

"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.

An acrimonious tone was reflected in the rhetoric deployed by both sides.

O'Brien called the lockouts by the rail companies "a disgrace" and said that "corporate greed is running rampant."

CN pushed back on Friday, saying the Teamsters are "holding Canada hostage to their demands."

"CN is focused on recovery in order to resume powering the economy. The Teamsters are focused on returning to the pickets and shutting everything down again," said spokesman Jonathan Abecassis in a phone interview.

Canadian Pacific said Thursday night it was "disappointed" by the union's challenge before the labour tribunal. "CPKC remains prepared to resume service as soon as it is ordered to do so by the CIRB."

The Teamsters say both companies are attempting to weaken protections around rest periods, shift length and scheduling, jeopardizing worker safety. CN also has its sights on a plan to move some employees to far-flung locations for several months at a time to fill labour gaps, the union says.

The minister's directive to the industrial relations board said the parties had reached an "impasse," necessitating intervention. Binding arbitration would produce a settlement to "secure industrial peace" and protect Canada's reputation as a reliable trading partner as well as the affected sectors, from agriculture to energy, retail and manufacturing, MacKinnon wrote.

His directive, seen by The Canadian Press, instructs the tribunal "to order CPKC to resume operations" and workers "to resume their duties."

The language around resumption of duties might suggest that strikes and lockouts are off the table following a ruling from the board.

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Earlier this summer, a referral to the tribunal from then-labour minister Seamus O'Regan failed to end a strike by WestJet mechanics because the document did not clearly bar job action while arbitration played out.

In that case, striking workers remained off the job until they reached a deal at the bargaining table, resulting in hundreds of cancelled flights.

In Calgary, Laporte said that as far as he is concerned the standoff will continue.

"Our people are still on strike," he said of CPKC workers. "We're still on the streets so our operations will not resume. It is not going to be business as usual for both companies."

This report by The Canadian Press was first published Aug. 23, 2024. With files from Bill Graveland in Calgary.