- The Teamsters union said Canadian National Railway (TSX:CNR) workers will return to work after the government moved to end the lockout while Canadian Pacific Kansas City (TSX:CP) also awaits a return to the job
- Freight traffic on both of the country’s largest railways ground to a halt for the first time in Canadian history, and the federal government stepped in to impose binding arbitration to put an end to the labour disputes
- Labour Minister Steve MacKinnon moved to settle the collective bargaining agreements through binding arbitration and expects the trains could start rolling “within days”
- Canadian National Railway opened trading at C$157.00 per share and Canadian Pacific Kansas City opened trading at C$110.00 per share
Update: The Teamsters union has issued a 72-hour strike notice to Canadian National Railway, just hours after announcing that picket lines were being removed and workers were resuming their duties.
Original story follows:
The Teamsters union said Canadian National Railway (TSX:CNR) workers will return to work Friday after the government moved to end the lockout late Thursday.
Meanwhile, Canadian Pacific Kansas City (TSX:CP) also awaits a return to the job.
Both stocks opened roughly 1 per cent higher on Friday after a recovery plan was initiated as CN awaits the formal order from the Canada Industrial Relations Board.
In a news update, CN’s team said it was satisfied that this labour conflict has ended but was disappointed that a negotiated deal could not be achieved at the bargaining table.
Freight traffic on both of the country’s largest railways ground to a halt for the first time in Canadian history, and the federal government stepped in to impose binding arbitration to put an end to a labour dispute.
Hours after the job action began, Labour Minister Steve MacKinnon announced that he moved to settle the collective bargaining agreements between the railways and the union through binding arbitration.
“Workers, farmers, commuters and businesses rely on Canada’s railways every day, and will continue to do so,” he said in a media statement. “It is the government’s duty and responsibility to ensure industrial peace in this critically vital sector.”
He told media present that he expects the trains could start rolling “within days.”
CP Kansas City stated it is preparing to restart railway operations after final binding arbitration, adding that railway operations are expected to resume soon.
“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,” CPKC’s president and CEO Keith Creel noted in a release.
The job action between the country’s two largest railways that threatened the economy had locked out 9,300 workers after failed contract negotiations with the Teamsters Canada Rail Conference.
CN Rail transports more than 300 million tons of natural resources, manufactured products and finished goods throughout North America every year across its nearly 20,000-mile rail network and related transportation services.
Canadian National Railway (TSX:CNR) opened trading at C$157.00 per share.
Canadian Pacific Kansas City is the first and only single-line transnational railway linking Canada, the United States and Mexico.
Canadian Pacific Kansas City (TSX:CP) opened trading at C$110.00 per share.
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(Top photo of a rail worker picket line Thursday in Sarnia, Ontario: Teamsters Canada Rail Conference)
This story has been edited from its original version to include updated information.