Trudeau urges railways, union to reach an agreement as clock ticks down to massive shutdown

Facing calls to intervene to avoid a massive railway disruption in the coming hours, Prime Minister Justin Trudeau is instead urging the opposing parties to reach an agreement for the sake of Canadians and Canadian businesses.

Canada's two main railway companies, Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC), are on the brink of shutting out thousands of workers in the midst of simultaneous — and tense — labour negotiations.

The companies say they will start locking out workers in the early hours of Thursday if they cannot reach a deal with the union representing 9,300 engineers, conductors and yard workers — bringing the roughly $1 billion worth of goods that move on the companies' tracks every day to a stop.

"My message is straightforward: it is in the best interest of both sides to continue doing the hard work at the table to find a negotiated resolution," Trudeau said during brief remarks Wednesday.

"Millions of Canadians, of workers, of farmers, of businesses right across the country are counting on both sides to do the work to get a resolution."

Earlier in the day, the Canadian Chamber of Commerce, Business Council of Canada, Canadian Federation of Independent Business and the Canadian Manufacturers & Exporters issued a joint statement calling on the federal government to take "immediate action" to keep trains, and the goods they carry, moving.

"The government of Canada has a responsibility to protect the Canadian public and maintain national security, and it is time to act decisively to fulfil that obligation," said the statement.

They argue that under Article 107 of the federal labour code, Labour Minister Steven MacKinnon could refer the dispute to the Canada Industrial Relations Board for binding arbitration and prohibit a strike, lockout or end any ongoing stoppage pending a resolution.

The federal government could also reconvene Parliament and introduce back-to-work legislation, the groups say.

"This is not about siding with either party; it is about standing up for Canadians," said the statement.

"The federal government must show leadership and act before our trains — and with them, our economy — grind to a halt. Otherwise, the steep price of inaction will be paid by Canadian families, workers and businesses."

Minister called for both sides to come to an agreement 

MacKinnon has already rejected a request from CN for binding arbitration, and instead has urged the parties to hammer it out at the negotiating table.

The union has been demanding better wages, benefits and working conditions for workers.

Teamsters Canada Rail Conference has claimed that CPKC wants to "gut the collective agreement of all safety-critical fatigue provisions." The union says CN is foisting a relocation on employees that would order them to move across Canada for months at a time to fill labour shortages.

In a statement earlier this week, Teamsters said so far, there have been "no meaningful advancements" in bargaining.

Barry Eidlin, associate professor and labour expert at McGill University, said Canada had a reputation for "being pretty trigger happy" when it comes to back-to-work legislation. But that has changed since a 2015 Supreme Court decision on the constitutional right to strike.

Labour Minister Steven MacKinnon makes his way to speak with reporters in the House of Commons on Feb. 26, 2024. (Adrian Wyld/The Canadian Press)

"We are in a different era," Eidlin said. "This current Trudeau government does seem to take that right seriously, and has repeatedly stated that the best deals are negotiated at the bargaining table."

He said there are drawbacks for both sides when binding arbitration is used.

"That, over time ... erodes the confidence in the process," he said. "And so it erodes the whole collective bargaining institution as a whole."

A phased shutdown of the railway networks is already underway. Transit authorities have said some commuter lines that run on CPKC tracks in Toronto, Montreal and Vancouver will be affected should dispatchers walk off the job.

U.S. Secretary of Transportation Pete Buttigieg said his department is closely monitoring the negotiations and any potential impacts to the flow of goods across the border.

"We are engaging with our Canadian counterparts and tracking the flow of vital goods to U.S. consumers and businesses," he posted on social media.