The Canadian government has stepped in to resolve the ongoing freight rail work stoppage that affected both Canadian National (CN) and Canadian Pacific Kansas City (CPKC) simultaneously for the first time in history. Labor Minister Steven MacKinnon has sent the dispute to binding arbitration, prompting the two railroads to prepare to resume operations. However, the Teamsters Canada Rail Conference (TCRC) plans to maintain picket lines while reviewing MacKinnon’s decision.
Reports from CBC indicate that MacKinnon’s intervention may not result in an immediate end to the lockouts affecting TCRC engineers and conductors, which began at 12:01 a.m. on August 22. Additionally, rail traffic controllers at CPKC, who are represented by the same union, are also locked out.
“These collective bargaining negotiations belong exclusively to CN, CPKC, and TCRC — yet their implications are felt by all Canadians,” MacKinnon stated. “As Minister of Labour, I believe the parties have reached a fundamental impasse. Therefore, it is my responsibility to exercise my authority under the Canada Labour Code to ensure industrial peace and to deliver both short- and long-term solutions in the national interest.”
The existing contracts between the TCRC and both railroads will remain in effect until new agreements are reached. MacKinnon emphasized that while negotiated agreements are preferable, the needs of the country supersede the pursuit of an agreement through traditional bargaining.
“Workers, farmers, commuters, and businesses rely on Canada’s railways every day, and will continue to do so. It is the government’s duty to ensure stability in this crucial sector,” MacKinnon asserted. “We will investigate the recurring conflicts in the railway industry and the conditions leading to these simultaneous work stoppages. Canadians can rest assured that their government will not let them suffer when parties neglect their responsibilities, especially when it impacts their livelihoods and communities.”
In a statement, CN announced that it lifted its lockout as of 6 p.m. ET and activated a recovery plan aimed at restoring operations and supporting the economy. “While CN is gratified that this labor conflict has concluded and it can resume its role in powering the economy, we are disappointed that a negotiated agreement could not be reached despite our best efforts,” stated the railroad.
CPKC is also preparing to restart operations and will provide further details on timing once it receives the Canada Industrial Relations Board (CIRB)’s order. “The Canadian government has recognized the significant impact of a railway work stoppage on the economy and North American supply chains,” said CPKC CEO Keith Creel. “The government has acted to safeguard Canada’s national interests, and while we respect collective bargaining, the severity of the situation necessitated intervention.”
The TCRC is maintaining picket lines while it assesses MacKinnon’s decision, the CIRB’s response, and seeks legal guidance. The union’s president, Paul Boucher, criticized the government’s actions, stating they allowed CN and CPKC to bypass efforts to prioritize rail safety. “The two major railways in Canada manufactured this crisis, held the country hostage, and coerced the government into disregarding the rights of working-class Canadians,” he said, labeling the decision “shameful.”
Lisa Raitt, a former labor minister, highlighted that arbitration requires agreement from both parties, contradicting MacKinnon’s assertion that a ministerial letter could mandate a return to work. MacKinnon expressed confidence that his decision will lead to an end to the shutdown but acknowledged that the CIRB operates independently.
Both CN and CPKC had previously sought arbitration to resolve the dispute, but MacKinnon had denied CN’s request for arbitration last week, asserting that it was their shared responsibility with the union to negotiate in good faith.
Prime Minister Justin Trudeau emphasized on X.com that while collective bargaining is preferred, government intervention becomes necessary when supply chains face serious consequences. Transport Minister Pablo Rodriguez echoed this sentiment, stating that the government is acting to safeguard the stability and reliability of Canada’s economy.
Both Scott Moe, Premier of Saskatchewan, and Danielle Smith, Premier of Alberta, welcomed the federal intervention, underscoring the importance of rail transportation for their provinces’ economies. Moe commended the government for taking appropriate action to end the rail stoppage, while Smith expressed her pleasure with MacKinnon’s measures.
