Alberta premier, cabinet ministers issue joint statement supporting binding arbitration in rail worker strike

Locked-out Canadian National Railway workers stand at a picket line as locomotives are moved by management at CN Rail's Thornton Yard, in Surrey, B.C., on Thursday, August 22, 2024. THE CANADIAN PRESS/Darryl Dyck

Alberta’s premier and several cabinet ministers issued a statement Sunday morning in support of a move to implement binding arbitration to help resolve the rail workers’ strike, while the Teamsters union said on social media that they would comply with the order.

Premier Danielle Smith, Transportation and Economic Corridors minister Devin Dreeshen, Agricultre and Irrigation minister RJ Sigurdson and Jobs, Economy and Trade mininister Matt Jones released the statement following the decision by the Canadian Industrial Relations Board (CIRB) to order operations to resume at Canadian Pacific Kansas City Railway (CPKC) and to continue at Canadian National Railway (CN).

“Alberta’s government is pleased that the CIRB ordered operations to resume at CPKC and continue at CN while the disputes proceed to binding arbitration.

“Each day this disruption continued would have had devastating impacts on our economy, workers, businesses, families, farmers and our relationships with Canada’s valued trading partners.

“Since the beginning of the dispute, Alberta’s government called on the federal government to end the work stoppage by either ordering binding arbitration in the dispute or passing back-to-work legislation.

“Going forward, we encourage the federal government to continue to respond quickly to labour disputes that have the potential to create widespread damage to Canadians, our country’s economy and our reputation as a reliable trading partner.”

Rail workers push back

CN trains started to move again Friday morning as workers started to return, even as the Teamsters union issued a 72-hour strike notice against CN just before 10 a.m.

At CPKC, the union has challenged the directive ordering binding arbitration that was issued by federal labour minister Steven MacKinnon to the CIRB late last week.

Late Saturday afternoon on social media, the Teamsters posted that "The CIRB's decision sets a dangerous precedent: big companies can now pause operations briefly, and the government will break unions. Workers' rights are significantly diminished. The Teamsters will comply, but our fight is just beginning."

The Teamsters union has vowed to appeal the ruling in court.

The cost

The economic fallout of the country's rail shutdown is set to come into focus this week, as shippers and producers take stock of delays and losses.

A work stoppage that began early Thursday morning at Canada's two major railways is slated to end first thing Monday after a decision from the federal labour board ordered the companies and their workers to resume operations.

But the full cost of the shutdown remains unclear, even as Moody's warned it could cost the Canadian economy $341 million per day.

The credit rating agency said agriculture, forestry and manufacturing were among the hardest-hit sectors.

The stoppage is poised to last only four days, but it marks the culmination of a phased wind-down at both railways that will have spanned roughly two weeks.

The decision Saturday from the Canada Industrial Relations Board imposes binding arbitration on all involved parties following an unprecedented dual work stoppage at Canadian National Railway and Canadian Pacific Kansas City that halted freight shipments and snarled commutes across the country.

CPKC said a full recovery will likely take several weeks. The company lifted its lockout after the labour board's decision Saturday evening, but employees declined CPKC's request to return to work for Sunday. Their strike will cease at 12 a.m. Monday, in line with the tribunal's ruling.

CN, whose workers issued a 72-hour strike notice Friday after the company lifted its own lockout the day before, are already back on the job to carry out the complicated process of revving up operations across 32,000 kilometres of track.

With files from The Canadian Press