Business groups call on Liberals to end rail lockout immediately

OTTAWA — Business groups and provincial premiers are calling on the Liberal government to end a labour dispute that has brought the country’s rail lines to a grinding halt.

CN and CPKC, the country’s biggest freight rail companies, locked out their workers first thing Thursday morning after failing to come to an agreement with the Teamsters Rail Conference, who represent more than 9,000 workers.

The two companies have never seen a labour dispute at the same time before and the shutdown prevents an estimated $1 billion in trade from moving every day.

Perrin Beatty, president of the Canadian Chamber of Commerce, said the government should have stopped the work stoppage before it started, but should now intervene to get the economy back on track.

“The Government of Canada had the opportunity to prevent an unprecedented shutdown of our Canadian freight rail network and some commuter services in major cities. Unfortunately, it did not act,” he said in a statement. “Canadians are already contending with a high cost of living. They need to see decisive leadership from government that puts their families and livelihoods first.”

Beatty called on Labour Minister Steven MacKinnon to use binding arbitration to end the dispute. The minister rejected a call for arbitration last week when CN asked him to impose it. His office said Thursday he was in meetings all day to resolve the matter.

Prime Minister Justin Trudeau addressed the issue briefly with reporters in Sherbrooke, Que., on Thursday, not taking any questions, but saying his government was working to find a solution, because they understand the importance of the issue.

“We’re taking it seriously. The minister is engaged directly. We are not taking this lightly, obviously, because Canadians across the country are worried about it,” he said. “We will have more to say shortly on what we’re doing to make sure that the right solution is found quickly for the economy.”

On Wednesday, before the stoppage began, Trudeau said a negotiated agreement was the best way to resolve the crisis.

“It is in the best interest of both sides to continue doing the hard work at the table,” he said.

The Grain Growers of Canada said the dispute will cost farmers $43 million a day at first, rising to $50 million a day if it extends into a second week. They warned it will cost consumers as well.

“The economic impact of this stoppage will be felt far beyond the farm gate,” said Andre Harpe, the group’s chair. “Consumers could see higher prices and shortages of food products that rely on grain, while farmers are left grappling with reduced income.”

According to Canada’s Energy Regulator, 89,000 barrels per day of crude oil moved by rail in June. Airlines have warned that a significant amount of jet fuel is moved by train and other business groups have warned of empty store shelves if the strike continues.

More than 30,000 commuters in Canada’s three largest cities had to find another way to work on Thursday. Trains that use CPKC-owned lines in Montreal, Toronto and Vancouver were not running. The impact is limited to those lines because dispatchers at CN, which hosts a greater number of passenger trains, are not part of the bargaining process and would not take part in a work stoppage.

Late Wednesday, Alberta Premier Danielle Smith called on the government to use the tools it has.

“The federal government must fix this crisis now, and they have the tools to do so,” she said on X. “Alberta’s government calls on the Minister to order binding arbitration to get both sides back to the table to reach an agreement while avoiding a work stoppage.”

Saskatchewan Premier Scott Moe made a similar call.

“Saskatchewan is in full support of the federal government using any tools necessary, including binding arbitration,” he said on social media.

Both railway companies have said they are willing to settle the dispute through binding arbitration, but the union has refused those offers.

According to CN, its engineers make an average of $150,000 a year and pay does not appear to be a central issue of this dispute. The union has raised concerns about working conditions, shift scheduling and a provision that would require workers to move for up to 90 days to help with labour shortages.

Mark Thompson, a professor Emeritus at the University of British Columbia, said current labour legislation gives the government broad powers and the minister can send this dispute to binding arbitration.

“The law is very vague. It says that the minister can do pretty much anything, if he deems it necessary to bring about industrial peace,” he said.

Thompson said from an outside perspective it seems the issue is about working conditions, which would be difficult for anyone to handle, with long hours and days away from home.

“You have working conditions which have their roots in the 19th century and now you’re in the 21st century.”

The Liberals could bring in back-to-work legislation, but would have to recall Parliament and find a party willing to support them.

NDP Leader Jagmeet Singh, who is in a supply-and-confidence agreement with the Liberals, has made it clear he would not support back-to-work legislation, even if the Liberals make the issue a confidence vote.

“I​​f that’s the path the Liberals want to go, we’re going to fight them every step of the way. We have made it very clear, whether it’s confidence or not, I don’t care. We’re going to vote against any measure that attacks working people.”

Conservative Leader Pierre Poilievre has yet to make a public comment on the rail stoppage.

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