‘Dangerous precedent’: Union reacts to board ordering rail employees back to work

After a contentious contract dispute led to a shutdown of Canada’s two major railways, the federal labor board ordered thousands of rail employees back to work on Saturday.

Federal Labour Minister Steven MacKinnon requested binding arbitration to resolve the ongoing disagreement between Canadian National (CN), Canadian Pacific Kansas City (CPKC), and the Teamsters union, which represents thousands of rail workers.

The board also ruled that no further labor disruptions, including lockouts or strikes, can occur during the arbitration process. This decision nullifies the recent strike notice issued by the Teamsters to CN.

CN announced it would comply with the order, which also extends the current collective agreement until a new one is finalized.

The Teamsters union stated that it would "lawfully comply" with the board's ruling but plans to appeal the decision in federal court.

"This decision by the CIRB sets a dangerous precedent," said Paul Boucher, president of the Teamsters Canada Rail Conference, in a statement.

"It signals to Corporate Canada that large companies need only halt operations briefly, cause short-term economic disruption, and the federal government will intervene to break a union. The rights of Canadian workers have been significantly undermined today."

Boucher criticized the Trudeau government, stating, "The Trudeau Liberals have chosen to side against middle- and working-class Canadians, abandoning their supposed progressive values at the first sign of short-term supply chain disruptions. The Teamsters have fought to protect rail safety in Canada, improve working conditions, and prevent CN from forcing workers to relocate thousands of kilometers away from their families—and we will continue to do so."

The union reiterated its commitment to abide by the board’s decision but warned it would challenge the ruling in federal court if necessary.

In an update posted on X, MacKinnon stated that he "expects that railway companies and employees will resume operations at the earliest opportunity."

The rail shutdown has had a significant impact on the Canadian economy, with provinces, economists, business groups, the agriculture sector, exporters, and retailers expressing concerns about potential losses and supply chain disruptions across various industries dependent on rail networks.

Key issues in the negotiations include relocation, rest periods, and scheduling, with the union emphasizing that the latter two demands are rooted in workers' safety concerns.

The shutdown also disrupted the daily commute for tens of thousands of passengers in Toronto, Montreal, and Vancouver, whose train lines run on CPKC-owned tracks. Without the locked-out traffic controllers to dispatch trains, passenger services on those rails were unable to operate.