Railroaded: trains grind to a temporary halt, then told to keep rolling

Posted on September 5, 2024 by Ryan Dahlman

By Cal Braid
Southern Alberta Newspapers
Local Journalism Initiative Reporter

On Aug. 23, one day after an announcement that Canada’s two major railways, CN and CPKC had briefly halted their operations over an unresolved dispute between the union and the railways, workers were told to get things rolling again. The federal government stepped in, and the labour minister wasn’t taking suggestions; he was giving orders.

The Grain Growers of Canada (GGC) immediately sounded the alarm on Aug. 22 over the dual work stoppage by both of Canada’s major railways, saying the disruption would inflict severe economic damage on the grain industry and the broader Canadian economy. 

A GGC news release said the stoppage was occurring at the most critical time of the year for grain farmers—harvest season—when rail transportation is essential for moving crops to market. It estimated that the stoppage would cost grain farmers over $43 million a day in the first week alone, with losses escalating to $50 million a day the week after and beyond if the two sides remained at odds. The GGC said Canada’s food, economic, and national security were at risk.

The federal government responded quickly. Minister of Labour Steven MacKinnon announced that the government was directing the Canadian Industrial Relations Board (CIRB) to impose final binding arbitration. Grain farmers and agriculture groups urged the Minister to impose binding arbitration through Section 107 of the Canada Labour Code to protect farmers’ livelihoods, food security, and Canada’s international reputation, an updated GGC release said.

The work stoppage concluded one minute after midnight on Aug. 26, but full service operations may take some time to get back on track. Clearing the backlogs and resuming normal operations can mean disruptions, even though the stoppage was brief. “We are calling on all parties to abide by yesterday’s directives and to work with, not against, the CIRB to resume railway service,” the GGC said.

The GGC release cited the statistics: Over 65,000 Canadian grain farmers grow crops that account for $35 billion in annual exports and the growers rely on the network of railside grain elevators to market and sell their grain. “With no viable alternatives to rail, the delays will result in lost sales, degraded grain quality, and a substantial loss of market confidence,” the release said.

Andre Harpe, chair of the GGC said, “Previous labour disruptions have already strained Canada’s trade relationships, and another prolonged stoppage could further damage our reputation as a reliable supplier. International buyers may turn to other countries for their grain needs, resulting in lost market share for Canadian farmers and long-term economic repercussions.”

The vociferous reaction by the GGC and all levels of government should, theoretically, give the Teamsters Canada Rail Conference (TCRC) and the workers the upper hand as the dispute moves into arbitration.

Premier Danielle Smith and several of her ministers released a joint statement that said Alberta’s government was pleased that the CIRB ordered operations to resume at the railways while awaiting arbitration. “Each day the disruption continued would have had devastating impacts on our economy, workers, businesses, families, farmers and our relationships with Canada’s valued trading partners,” the release said.

NDP Leader Jagmeet Singh took a far dimmer view of the federal intervention. “The Liberal govt’s decision to undermine 9,300 Canadian rail workers with a binding arbitration sends a message to big corporations like CN & CPKC: Being a bad boss pays off,” he posted on X. “Justin Trudeau’s actions are cowardly, anti-worker, and proof that he will always cave to corporate greed.”

CN said that for nine months, it negotiated in good faith and consistently proposed serious offers, with better pay, improved rest, and more predictable schedules. The TCRC claims it made similar good faith proposals on the workers’ behalf.

Paul Boucher, president of the TCRC said,”By sidestepping the collective bargaining process and ordering binding arbitration, the federal government has undermined the foundation on which labour unions work to improve wages and working conditions for all Canadians. Bargaining is also the primary way our union fights for rail safety—all considerations that outweigh short-term economic concerns.”

There are least four sides to the story: the government, corporate railways, union and rail workers, and farmers all have a stake in this. Ultimately, the nation’s economic interests have emerged as priority number one. The Teamsters Union has now said it will lawfully comply with the CIRB decision, but will also appeal it before a federal court.