Union announces fight against Canada's plan to end rail closure

By Allison Lampert, David Ljunggren and Anna Mehler Paperny

MONTREAL/OTTAWA, Aug 23 (Reuters) – The union representing more than 9,000 Canadian rail workers said on Friday it would fight the Canadian government's efforts to impose binding arbitration that would end an unprecedented rail halt at the country's two largest freight rail operators.

The Teamsters union had also announced a strike for Monday at Canadian National Railway, Canada's largest railway company.

The union's actions are the latest twist in labor disputes at CN and Canadian Pacific Kansas City, which locked out Teamsters union members on Thursday, triggering a simultaneous rail stoppage that business groups say could cause hundreds of millions of dollars in economic damage.

They further complicate the task of the Canada Industrial Relations Board (CIRB), which met for hours with union and rail representatives on Friday after being asked by the government to end the impasse.

The Teamsters union said Friday evening that the parties had concluded a day-long meeting in which they argued that the government does not have absolute power to end the labor dispute. “The union will comply with any decision of the CIRB in accordance with the law and is prepared to challenge it in federal court if necessary,” it said.

Railroad CN said in a statement that the company would proceed with a recovery plan pending the CIRB's decision.

Labour Minister Steven MacKinnon pointed to the economic risks and also called on the board to subject the negotiations between the union and the companies to binding arbitration and to immediately resume operations on both railways.

Canada, the second largest country in the world by area, relies heavily on rail for the transport of a wide range of raw materials and goods.

The Canadian Chamber of Commerce expressed disappointment at the Teamsters' decision to challenge the government's order.

“This action will prolong the damage to our economy and threaten the well-being and livelihoods of Canadians, including union and non-union workers in many industries,” the group said.

LEGAL CHALLENGES

Legal experts warned that the Teamsters' lawsuit would lead to uncertainty and delays.

If the CIRB orders workers to return to work pending binding arbitration, the union could challenge that decision and seek judicial review, says Bruce Curran, a professor of labour law at the University of Manitoba. He adds that if workers do not return to work during the hearing, the railroad company could seek an injunction to force them to return.

The federal government could also try to pass a return-to-work law, but it would need the support of at least one other party to do so, as it does not have a majority of seats. The left-leaning New Democratic Party, which traditionally enjoys strong support from unions and backs Trudeau's government, has condemned the government's interference.

The timetable for a CIRB decision is unclear, the union said in a statement on Friday afternoon.

Francois Laporte, president of Teamsters Canada, had previously condemned MacKinnon's decision.

“We do not believe that a third party should decide our working conditions,” he told reporters at a vigil outside CPKC headquarters in Calgary.

He said that if an order to return to work is issued, “our people will continue to strike. We will continue to be on the streets, so operations will not resume. It will not be business as usual for both companies.”

STRIKE WARNING

The union representing CN workers also notified the company of a strike on Friday, shortly after saying its members would return to work in response to the lifting of CN's lockout.

The union announced that conductors, train drivers and other workers at Montreal-based CN would go on strike at 10 a.m. ET (2 p.m. GMT) on Monday.

The Teamsters said they were willing to negotiate with CN over the weekend and reach an agreement, despite disagreements over schedules, shift lengths and labor availability.

The Canadian government and the CPKC did not comment on Friday.

CPKC said late Thursday that it was preparing to resume operations in Canada and would provide further details on the timeline once the CIRB order was received.

A CN spokesman said Friday that train service had resumed and that plans to resume service were in the works.

“We are focused on getting back to work,” said CN spokesman Jonathan Abecassis. “The Teamsters are focused on getting back to the picket lines.”

A lockout at CPKC was not lifted. The union had already announced a strike at CPKC before the lockout began.

MacKinnon had expressed confidence on Thursday that his move to refer the matter to the CIRB and seek binding arbitration would stand up in court, given the broad powers given to him by the country's labour law.

“We are very, very confident about the path we have chosen here.”

(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)

(c) Copyright Thomson Reuters 2024.

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