The Canadian labor minister late Thursday afternoon intervened in a contract dispute between the nation's two major railways and a Teamsters union, directing a branch of the Canadian government to impose final binding arbitration on the two parties.
The order signals the resumption of railroad operations is nearing after a lockout of nearly 10,000 unionized Canadian Pacific Kansas City and Canadian National workers that halted railcar traffic in the country at 12 a.m. Thursday.
U.S. ag shippers and railroads have warned cross-border traffic disruptions from a strike or lockout would ripple through the United States.
In a statement announcing the decision, Labour Minister Steven MacKinnon noted the importance of Canada's railways to the country's farmers, as well as other industries, and added "Canadians can be assured that their government will not allow them to suffer when parties do not fulfill their responsibility."
"As Minister of Labour, it is my assessment that the parties are at a fundamental impasse," MacKinnon said. "Therefore, it is my duty and responsibility to invoke my authorities under the Canada Labour Code to secure industrial peace and deliver the short and long-term solutions that are in the national interest."
Canadian Pacific Kansas City, in a press release, said its "teams are already preparing for the safe and orderly resumption of our rail network," adding that it would provide further details about timing once it received an order from the Canada Industrial Relations Board, which is in charge of the arbitration.
"The government has acted to protect Canada’s national interest," CPKC President and CEO Keith Creel said in the release. "We regret that the government had to intervene because we fundamentally believe in and respect collective bargaining; however, given the stakes for all involved, this situation required action."
Canadian National said it ended its lock-out at 6 p.m. Thursday and "immediately initiated its recovery plan."
"While CN is satisfied that this labour conflict has ended and that it can get back to its role of powering the economy, the Company is disappointed that a negotiated deal could not be achieved at the bargaining table despite its best efforts," the company said.
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