The Canadian government has intervened to end a shutdown of freight rail services that had caused concerns of supply-chain chaos across North America. Following a lockout of more than 9,000 unionised employees by Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC), Labour Minister Steve MacKinnon has ordered the railroads to enter arbitration with their labour union to resolve the dispute.
MacKinnon stated that freight rail operations could resume within days, ensuring the stability and certainty that Canada’s railways provide to the economy. Both CN and CPKC have agreed to resume services after MacKinnon’s announcement, although no specific timeline has been given.
The Teamsters Canada Rail Conference union expressed disappointment with the government’s decision to bypass collective bargaining and force arbitration. The union’s president, Paul Boucher, criticized the government for using a rarely utilized section of the labour code to resolve the conflict.
The shutdown of freight services, which disrupted thousands of commuters in major cities like Toronto, Montreal, and Vancouver, had threatened to cause significant damage to the Canadian economy and disrupt supply chains across North America. Approximately half of Canadian exports are transported via rail, with freight services moving goods worth billions of dollars.
Economic experts had warned that a prolonged shutdown could result in significant economic losses. However, with the government’s intervention and the resumption of rail services, it is hoped that normal operations will soon resume, preventing further disruptions to the economy.
Source
Photo credit www.aljazeera.com
