New strike threatens Canada’s economy as CN workers walk out

As CN workers prepare to strike, business groups warn of potential hundreds of millions in economic damage

MONTREAL:

Workers at Canadian National Railway (CN) are set to go on strike on Monday, as announced by the Teamsters union on Friday. Thes development introduces a fresh threat to Canada’s economy, just days after the workers returned to their jobs following a previous labour dispute. The union's decision comes after its earlier commitment to challenge the Canadian government's intervention to end a significant rail stoppage.

The strike involves conductors, locomotive engineers, and other employees at CN, the country’s largest railway company. This marks the latest chapter in an escalating conflict between unions and Canada’s two major rail operators, CN and Canadian Pacific Kansas City (CPKC).

On Thursday, both rail companies had locked out over 9,000 unionised workers, leading to a simultaneous rail stoppage. Business groups warned that this halt in operations could result in hundreds of millions of dollars in economic losses.

Canada’s Labour Minister, Steven MacKinnon, took decisive action on Thursday by requesting the country’s industrial relations board to order an end to the stoppage. He also called for binding arbitration for the union, CN, and CPKC, citing concerns over the potential economic impact of prolonged rail disruptions.

Canada, being the world’s second-largest country by area, heavily depends on its rail network for transporting key commodities and goods. Business and agricultural groups had urged the government to intervene quickly to avoid further economic damage.

However, the Teamsters union, which represents the workers, has strongly opposed the government’s intervention. Francois Laporte, president of Teamsters Canada, expressed his dissatisfaction with MacKinnon's decision, arguing that a negotiated contract reached through direct bargaining would be the most effective solution. "We don't believe a third party should determine our working conditions," Laporte said during a picket outside CPKC’s Calgary headquarters.

As of Friday, a Canadian government official had not yet commented further on the issue.

Meanwhile, CN has resumed operations, with trains gradually returning to service. Jonathan Abecassis, a spokesperson for CN, confirmed that the company’s plan to resume full operations was under way. "We are focused on getting back to work," Abecassis said, while noting that the Teamsters appeared more intent on resuming their protests.

While CN’s lockout was lifted following the government’s intervention, CPKC’s lockout remained in effect as of Friday. MacKinnon stated that he expected the Canadian Industrial Relations Board (CIRB) to issue a ruling soon. Union and railroad officials met with CIRB representatives on Friday morning, according to updates from the Teamsters on social media.

Chris Monette, a spokesperson for the Teamsters, indicated that the union would challenge the constitutionality of MacKinnon’s referral, though he did not provide specific details about the legal challenge. In response, MacKinnon expressed confidence that his decision would withstand legal scrutiny, citing his broad authority under Canada’s labour code. "We’re very confident about the path we’ve chosen here," MacKinnon said, justifying his intervention to prevent further rail shutdowns.

Monette also revealed that CN workers returned to work on Friday, despite the absence of a formal back-to-work protocol from the railway. He anticipated that the return to operations would be somewhat chaotic.

Meanwhile, CPKC workers remained locked out, with the company awaiting further instructions from the CIRB. CPKC issued a statement on Thursday indicating that it was preparing to restart operations, with more details expected soon.