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CANADA RAIL SHUTDOWN: UNION CHALLENGES GOVERNMENT MOVE

By Allison Lampert, David Ljunggren and Anna Mehler Paperny
August 24, 20243:39 PM GMT+1Updated 11 hours ago
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Item 1 of 6 Calgary, August 23, 2024. REUTERS/Todd Korol
[1/6]Calgary, August 23, 2024. REUTERS/Todd Korol Purchase Licensing Rights,
opens new tab

 * Summary
 * Companies

 * Teamsters union files strike notice for CN workers starting Monday
 * CN says trains are resuming operations
 * Labour Minister asks CIRB to issue back-to-work order

MONTREAL/OTTAWA, Aug 23 (Reuters) - The union representing over 9,000 Canadian
rail workers vowed on Friday to challenge the federal government's effort to
mandate binding arbitration that would end an unprecedented rail stoppage at
both of the country's main freight rail carriers.
The Teamsters union also filed notice to strike on Monday at Canadian National
Railway (CNR.TO), opens new tab, Canada's largest railway.
The union's moves are the latest twist in labor disputes at CN and Canadian
Pacific Kansas City (CP.TO), opens new tab, which locked out Teamsters members
on Thursday, triggering a simultaneous rail stoppage that business groups said
could inflict hundreds of millions of dollars in economic damage.
Advertisement · Scroll to continue

They further complicate the task of the Canada Industrial Relations Board
(CIRB), which was meeting for hours on Friday with union and railway
representatives, after the government asked it to end the impasse.
The Teamsters union on Friday night said the parties had concluded a day-long
meeting, in which it argued that the government did not have absolute power to
end the labor action. "The union will lawfully abide by any decision from the
CIRB, and is prepared to file challenges in federal court if necessary," it
said.
Advertisement · Scroll to continue

Railroad CN in a statement said it would move forward with a recovery plan until
a CIRB decision was issued.
Labour Minister Steven MacKinnon, citing the risk to the economy, also asked the
board to impose binding arbitration on talks between the union and companies,
and for operations at both railways to resume immediately.
Canada, the world's second-largest country by area, relies heavily on trains to
transport a wide range of commodities and goods.

The Canadian Chamber of Commerce said it was disappointed with the Teamsters'
decision to challenge the government's directive.
"This action will prolong the damage to our economy and jeopardize the wellbeing
and livelihoods of Canadians, including union and non-union workers across
multiple industries," the group said.


LEGAL CHALLENGES

Legal experts warned the Teamsters' challenge creates uncertainty and delays.
If CIRB orders workers back on the job pending binding arbitration, the union
could challenge that decision and ask for a judicial review, said University of
Manitoba employment law professor Bruce Curran, adding that if the employees do
not return to work while the hearing is pending, the railways could seek an
injunction forcing them back.

The federal government could also seek to pass back-to-work legislation, for
which it would need the support of at least one other party because it does not
control a majority of seats. The left-leaning New Democratic Party, which
traditionally enjoyed strong union support and which props up Trudeau's
government, has decried the government's intervention.
The timeline for a CIRB decision is unclear, the union said on Friday afternoon
in a statement.

Earlier in the day, Francois Laporte, president of Teamsters Canada, denounced
MacKinnon's decision.
"We don't believe a third party (should) decide what are going to be our working
conditions," he told reporters at a picket outside CPKC's Calgary headquarters.
He said that in case of a back-to-work order, "our people will still be on
strike. We will still be on the streets, so operations will not resume. It's not
going to be business as usual for both companies".


STRIKE NOTICE

The union representing CN workers also served the company with a strike notice
on Friday, shortly after saying its members would return to work in response to
CN lifting its lockout.
The union filed notice that conductors, locomotive engineers and other workers
at Montreal-based CN would strike on Monday at 10 a.m. ET (1400 GMT).
The Teamsters said they were prepared to negotiate with CN over the weekend and
reach a deal despite disputes over scheduling, duration of shifts and
availability of labor.
The Canadian government and CPKC had no comment on Friday.
CPKC said late on Thursday that it was preparing to restart operations in Canada
and that further details on timing would be provided once it received CIRB's
order.
A CN spokesperson said on Friday trains were starting to run and that its plan
to resume operations was under way.
"We are focused on getting back to work," said Jonathan Abecassis, CN's
spokesperson. "The Teamsters are focused on getting back to the picket line."
A lockout at CPKC has not been lifted. The union had already served CPKC with a
strike notice before the lockout began.
MacKinnon had expressed confidence on Thursday that his move to refer the matter
to CIRB and seek binding arbitration would survive a court challenge, given the
broad power he has under the country's labor code.
"We're very, very confident about the path that we've selected here."

Map showing the routes of the Canadian National and Canadian Pacific railroads

Make sense of the latest ESG trends affecting companies and governments with the
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Reporting by Allison Lampert in Montreal and David Ljunggren in Ottawa and Anna
Mehler Paperny in Toronto; Additional reporting by Nilutpal Timsina; Editing by
Ismail Shakil, Jonathan Oatis, Rod Nickel, David Evans and Diane Craft

Our Standards: The Thomson Reuters Trust Principles., opens new tab

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Purchase Licensing Rights
David Ljunggren

Thomson Reuters

Covers Canadian political, economic and general news as well as breaking news
across North America, previously based in London and Moscow and a winner of
Reuters’ Treasury scoop of the year.

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Anna Mehler Paperny

Thomson Reuters

Toronto-based correspondent covering among other topics migration and health.

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READ NEXT

 * Sustainable Finance & ReportingcategoryCanada rail shutdown ordered by labor
   board to end
 * Sustainable Finance & ReportingcategoryNorfolk Southern reaches agreements
   with four labor unions
 * Canada rail shutdown may still delay western grain exports
 * BusinesscategoryUS requests probe of alleged labor rights denial at Pirelli
   facility in Mexico
 * BusinesscategoryTeamsters Canada says Canadian National workers will return
   to work on Friday




SUSTAINABILITY


 * CANADA RAIL SHUTDOWN ORDERED BY LABOR BOARD TO END
   
   Sustainable Finance & Reportingcategory · August 25, 2024 · 2:07 AM GMT+1 ·
   35 min ago
   
   The board imposed binding arbitration on the companies and the worker's union
   to reach new deals and to impose a continuation of the existing contracts
   until they reach agreements.

 * WorldcategoryWildfires rage in sugar cane fields in Brazil's southeast1:04 AM
   GMT+1
 * Sustainable Finance & ReportingcategoryCanada rail shutdown: Union challenges
   government moveAugust 24, 2024
 * categoryChinese money brokers pledge anonymity in bond quotationAugust 24,
   2024
 * categoryCanada rail shutdown may still delay western grain exportsAugust 24,
   2024




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