Canada’s federal government has moved quickly to end an industrial dispute that has recently halted the country’s two largest railways, threatening supplies to North America.
Labor minister Steve McKinnon said rail services should resume “within days” as he sent the two sides to a final binding agreement.
Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC) locked out about 9,300 workers in a midnight strike Wednesday, after failing to reach an agreement with the Teamsters union.
Canada sends about 75 percent of all goods it exports to the US, mostly by rail. A long dispute could disrupt the shipment of a wide range of goods, from grain and beans to potash, coal and timber.
“Workers, farmers, commuters and businesses rely on Canada’s railways every day, and they will continue to do so,” said Mr. McKinnon. “It is the government’s duty and responsibility to ensure industrial peace in this very important sector.”
Canada, the world’s second largest country by area, relies heavily on rail transportation.
The government said that while it supports the collective bargaining process, it needs to use its powers under the Canada Labor Code to ensure that essential goods and trade are still being transported.
Under its mandate, the Canada Industrial Relations Board will resolve disputes through collective agreements. In the meantime, the Board will also extend the current terms of collective agreements, so that workers can resume work as quickly as possible.
Labor contracts at both railways expired at the end of last year.
After months of talks, the tense talks came to a halt on Wednesday evening, the CBC reported, with both sides accusing the other of refusing to negotiate hard.
CN and CPKC both sought binding arbitration.
CN said on Thursday it was “satisfied” that the labor dispute was over.
“The company is disappointed that the negotiated agreement could not be reached at the negotiating table despite its best efforts,” it added.
Keith Creel, chief executive officer of CPKC, said in a statement that the government acted “to protect Canada’s national interest”.
“We apologize that the government had to intervene because we believe in and respect collective bargaining; however, given that all stakeholders are involved, this situation calls for action,” he added.
Speaking to the BBC on Thursday, before the deal was announced, Team Canada’s National President, François Laporte, said his union’s top priority was safety.
“All over Canada we have trains carrying goods, carrying energy, carrying chemicals,” he said. “And we want to make sure that those trains are used by people who get proper rest, who are safe, who don’t get tired.”
Mr. Laporte echoed an earlier statement from the Teamsters Canada Rail Conference that accused the railroads of only caring about the “bottom line”.
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