CANADA's Labour Minister has ordered the imposition of final binding arbitration between the country's two Class I railways and the union representing more than 9,000 workers, reports New York's Journal of Commerce.
Minister Steven MacKinnon said he's ordered the Canada Industrial Relations Board to 'assist the parties in settling the outstanding terms of their collective bargaining agreements, including by imposing final binding arbitration.'
'I have also directed the board to extend the term of the current collective bargaining agreements until new agreements have been signed, and for operations on both railroads to resume forthwith,' said Mr MacKinnon.
His directive came about 17 hours after canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC) locked out more than 9,000 workers, snarling supply chains for US and Canadian businesses that rely on trains to transport their cargo. It marks the first time both Canadian railways shut down simultaneously.
Mr MacKinnon's decision marks a small victory for CN and CPKC, which had urged him to send the parties to binding arbitration, which the Teamsters Canada Rail Conference (TCRC) opposed. Mr MacKinnon rejected calls last week to use his regulatory authority to do so, but after more than 17 hours without a new labour deal between the parties, the minister reversed course.
Binding arbitration doesn't mean a strike is not possible.
Seamus O'Regan, who preceded Mr MacKinnon as Canada's Labour Minister, ordered WestJet and airline mechanics into binding arbitration this summer. But that did not stop the union from eventually striking for 29 hours before reaching a deal with the airline on June 28.
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Minister Steven MacKinnon said he's ordered the Canada Industrial Relations Board to 'assist the parties in settling the outstanding terms of their collective bargaining agreements, including by imposing final binding arbitration.'
'I have also directed the board to extend the term of the current collective bargaining agreements until new agreements have been signed, and for operations on both railroads to resume forthwith,' said Mr MacKinnon.
His directive came about 17 hours after canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC) locked out more than 9,000 workers, snarling supply chains for US and Canadian businesses that rely on trains to transport their cargo. It marks the first time both Canadian railways shut down simultaneously.
Mr MacKinnon's decision marks a small victory for CN and CPKC, which had urged him to send the parties to binding arbitration, which the Teamsters Canada Rail Conference (TCRC) opposed. Mr MacKinnon rejected calls last week to use his regulatory authority to do so, but after more than 17 hours without a new labour deal between the parties, the minister reversed course.
Binding arbitration doesn't mean a strike is not possible.
Seamus O'Regan, who preceded Mr MacKinnon as Canada's Labour Minister, ordered WestJet and airline mechanics into binding arbitration this summer. But that did not stop the union from eventually striking for 29 hours before reaching a deal with the airline on June 28.
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