(Stewart Oke)

By Josh Hall | @Vancan19

rail lines, union release statements

Ottawa will enforce binding arbitration to end CN/CPKC rail lockout

Aug 22, 2024 | 3:33 PM

Federal Minister of Labour Steve MacKinnon says he’s using the legislative powers he has to enforce binding arbitration, effectively halting a nationwide labour dispute between union Teamsters Rail Canada and rail companies CN and CPKC.

MacKinnon also said that the expired collective bargaining agreement would be extended until a new deal is in place.

Things have evolved very quickly in the lead-up to the announcement, which came down around 2:30 MT, with the lockout having begun at midnight Thursday.

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NDP Leader Jagmeet Singh was adamant he wouldn’t support back-to-work legislation to force the 9,300 workers to return to their duties, but binding arbitration doesn’t require approval of Parliament. He and many others are yet to make new statements following MacKinnon’s announcement.

The federal Conservative party has also not commented, according to the Canadian Press.

Prior to MacKinnon’s announcement, the Government of Alberta released a statement Thursday through the offices of Premier Danielle Smith, Minister of Transportation and Economic Corridors Devin Dreeshen, Minister of Agriculture and Irrigation RJ Sigurdson, and Minister of Jobs, Economy and Trade Matt Jones.

“This stoppage will have devastating impacts on Canada’s economy, Canadian families and communities across this country,” they said, also imploring Ottawa to implement back-to-work legislation.

Alberta NDP Leader Naheed Nenshi said Wednesday night that back-to-work legislation was not the way to go, and that an agreement had to be met in good faith.

Nenshi called Smith’s demand for such legislation, which she also made clear a week ago, “remarkably unhelpful.”

Stewart Oke is a farmer in Delburne, southeast of Red Deer, and serves as Region 3 Director for Alberta Grains. Oke estimates that for every day the stoppage lasts, it would take two weeks for shipments to catch up.

“This could affect our status on the international trade market as a reliable and consistent source of high-quality wheat,” Oke said, adding that the ramifications trickle down to every farm.

Oke says with the way producers use forward pricing contracts, costs for things such as land payments, fuel bills and equipment leases are deferred until the fall. But if farmers can’t move their product, they don’t get paid, which for many means cash flow and delinquency issues.

“The announcement for binding arbitration invoked by Minister MacKinnon is a positive development,” Mike Flynn, executive director with Alberta Grains, said Thursday afternoon. “Every day of disruption has a profound impact on Alberta Farmers at this critical time of year. We continue to encourage all parties involved to work towards restoring rail service as soon as possible to minimize the impacts on Alberta’s agriculture sector.”

Many others shared thoughts prior to the binding arbitration announcement.

Grain Growers of Canada (GGC) pointed out the stoppage is happening during harvest season — the most critical time of year for grain farmers. GGC also asked for the feds to intervene, though weren’t specific as to how.

Canada is home to over 65,000 grain farmers who account for $35 billion in exports, according to the GGC.

Meantime, the National Farmers Union (NFU) commented on the pressure felt by workers.

“The railway duopoly is pressuring workers to accept unsafe working conditions which jeopardize worker safety and the proper operation of the Canadian railway system,” said Al Birchard, a grain and pulse grower. “Back-to-work legislation will not address long term issues that could affect the ability of farmers to deliver their grain.”

Will Robbins, a NFU board member in Saskatchewan said that, “As a farmer, I do not like being used as a bargaining chip.”

Between 2013 and 2022, the NFU claims, CN Rail’s annual net income has doubled from $2.6 billion to $5.6 billion, while CPKC’s annual net income more than tripled from $875 million to $3.9 billion.

The Mining Association of Canada (MAC) also released a statement saying the stoppage would impact Canada’s ambitions to supply minerals and metals to the world, particularly as the race for critical minerals intensifies.

“As the single largest industrial customer group of Canada’s railways, the mining sector has seen first-hand how detrimental unpredictable work stoppages are to Canada’s reputation as a reliable trading partner,” said Pierre Gratton, MAC’s President and CEO.

Thursday, ATB Financial shared Statistics Canada data which shows 2022 rail shipments from Alberta accounted for the export of 8.8 million tonnes of coal. Then there’s fuel oils and crude petroleum at 8.1 million tonnes, wheat at 6.3 million, and gaseous hydrocarbons at 6.0 million.

Other rail exports from Alberta include sulphur, plastic and rubber, fertilizers, sand an gravel, wood and lumber, animal feed and eggs, fresh vegetables, colza seeds, and cement, among others.

Watch our Canada News page for the latest on the work stoppage.

This story will be updated as more reaction pours in from across the country.

(with files from The Canadian Press)

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