Canadian Panel Backs Government Order Resuming Freight Rail Operations

The Canada Industrial Relations Board (CIRB) has upheld Labor Minister Steven MacKinnon's decision to end the work stoppages at Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC). The board's ruling mandates both railroads to resume operations and proceed with binding arbitration to settle contract disputes with the Teamsters Canada Rail Conference (TCRC).

Rail operations must restart by 12:01 a.m. ET on Monday, August 26, with the existing labor contract, which expired on December 31, 2023, extended until a new agreement is reached. The arbitration process will kick off with a meeting at the CIRB on Thursday, August 29, at 11 a.m. ET.

Following the CIRB’s ruling on Saturday, August 24, the TCRC stated it will comply but plans to appeal the decision in federal court.

“This decision by the CIRB sets a dangerous precedent,” said TCRC President Paul Boucher. “It sends a message to corporate Canada that large companies can halt operations, cause short-term economic disruption, and expect government intervention to break a union. Canadian workers' rights have been significantly undermined today.”

In a statement, CN expressed its commitment to complying with the ruling, though it expressed disappointment that a negotiated agreement couldn’t be reached. “The company is satisfied that this order effectively ends the unpredictability that has negatively impacted supply chains for months,” the statement said.

CPKC also confirmed its compliance, ending the lockout it imposed on August 22. The company has called on TCRC workers to return for the day shift on Sunday, August 25, “so we can get the Canadian economy moving again as quickly as possible and minimize further supply chain disruptions.” CPKC noted that while the ruling brings an end to months of uncertainty, it cautioned that full network recovery could take “several weeks,” with additional time needed for supply chain stabilization.

In its decisions addressing each railroad, the CIRB stated it lacks the authority to review or challenge the minister’s directives, leaving that responsibility to the courts. The board emphasized it has no discretion to refuse or modify the terms of the minister’s order.

MacKinnon announced the arbitration directive on Thursday, August 22, roughly 17 hours after both railroads locked out TCRC members. However, operations remained uncertain as CPKC awaited the CIRB ruling before proceeding with its restart, while the union maintained picket lines at CPKC in the interim. CN lifted its lockout on Thursday at 6 p.m., and while the union initially agreed to return, it later issued a strike notice effective at 10 a.m. on Monday, August 26, to pressure CN into further negotiations.

CN’s statement highlights that the CIRB decision prohibits any additional labor stoppages during arbitration, effectively voiding the TCRC’s strike notice.

MacKinnon, in a post on the social media platform X, emphasized that he expects both the railroads and employees to “resume operations at the earliest opportunity.”