World

Canadian government moves quickly to end rail stoppage

By AAP Newswire

Aug 23, 2024

Train cars in Surrey, British Columbia — Experts say Canada's economy could shrink by billions of dollars if a rail stoppage continues. -AP

The Canadian government has moved quickly to end an unprecedented rail stoppage, announcing it would ask the country's industrial relations board to issue a back-to-work order.

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Canada's top two railroads had locked out more than 9,000 unionised workers earlier in the day, triggering a simultaneous rail stoppage that business groups said could inflict hundreds of millions of dollars in economic damage.

Labour Minister Steven MacKinnon told reporters he was acting "to ensure that the activities of both of these rail companies immediately resume" and said he was referring the matter to the board for binding arbitration.

MacKinnon said he was confident the board would issue a back-to-work order within the next few days.

"I assume that the trains will be running within days," he said.

The companies - Canadian National Railway and Canadian Pacific Kansas City - and the Teamsters union blamed each other for the work stoppage after multiple rounds of talks failed to yield an agreement.

The decision marked a change of mind by the Liberal government of Prime Minister Justin Trudeau, which had long made clear its desire to see the matter settled at the bargaining table.

"We gave negotiations every possible opportunity to succeed ... but we have an impasse here," said MacKinnon.

"And that is why we have come to this decision today."

By AAP Newswire

Australian Associated Press