Canada’s Trudeau government orders binding arbitration to end railway lockout

By Barry Ellsworth

TRENTON, Canada (AA) – The government of Canada’s Prime Minister, Justin Trudeau, ordered binding arbitration Thursday to end a railway strike that began earlier in the day.

The measure was announced by Labor Minister Steve MacKinnon during a press conference carried live on individual media websites and television.

The move came after the Canadian Pacific Kansas City (CPKC) and Canadian National railways locked out about 10,000 unionized employees when new contract negotiations broke down.

Because of the dire economic repercussions in both Canada and the US that a work stoppage would create, MacKinnon ordered the dispute sent to the Canadian Industrial Relations Board for arbitration and settlement.

“I have also directed the board to extend the term of the current collective agreements until new agreements have been signed, and for operations on both railways to resume forthwith,” he said at the press conference.

MacKinnon said the two railways should be back on track “within days.”

The Railway Association of Canada said about CAN$380 billion ($279 billion) is handled by the two railways annually. The association called the trains “the backbone of our economy.”

The impact of an extended work stoppage on the economy would be catastrophic, said the head of a national manufacturers’ association.

“North American manufacturing supply chains depend on functioning rail links. If rail traffic grinds to a halt, businesses and families across the country will feel the impact. Manufacturing workers, their communities and consumers of all sorts of products will be left reeling from supply chain disruptions," National Association of Manufacturers President and CEO Jay Timmons said in a statement.

Such a work stoppage would also affect tens of thousands of commuters.