Labour Board Orders Rail Employees Back to Work, Imposes Binding Arbitration

The federal labour board has issued a back-to-work order for rail workers following a contract dispute that saw Canada’s two main railways shut down, with the board saying trains need to start moving again on Monday.
As part of the decision by the Canada Industrial Relations Board (CIRB), binding arbitration has been imposed on the parties.
Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC) trains stopped shipments on Aug. 22 after talks broke down with workers over several contract issues.
Later that day, federal Labour Minister Steven MacKinnon directed the tribunal to begin the arbitration process to help get shipments moving. The government previously had said it didn’t want to get involved, and wanted to see the issue resolved at the bargaining table.
Workers at CPKC had also remained on picket lines as the union challenged the directive for binding arbitration.
The CIRB said on Aug. 24 that the tribunal did not have the authority to determine whether the government directive was valid.
“The board has concluded that, in this case, it has no discretion or ability to refuse to implement, in whole or in part, the minister’s directions or to modify their terms,” wrote chairwoman Ginette Brazeau in a pair of rulings.
The companies, conductors, dispatchers, and yard workers have been ordered to start operations under the existing terms at 12:01 a.m. on Aug. 26.
The current collective agreement remains in place until a new agreement is signed.
The union said that it too will comply with the decision but plans to appeal the ruling, which it says sets a “dangerous precedent.”
The labour board said that binding arbitration will start on Aug. 29.
CN and CPKC transport about $1 billion in goods each day, the Railway Association of Canada said. The Teamsters represent 6,000 CN workers and 3,300 CPKC workers.
CN said the union dismissed its offers of better pay and improved rest and schedules. CPKC said that efforts to bargain in good faith with the union were in vain.