The government in Canada has forced the country’s two major railroads, Canadian National and CPKC, into arbitration with their labor union to end a lockout that began due to a labor agreement impasse. The union representing 10,000 engineers, conductors, and dispatchers accused the railroads of creating a crisis deliberately to force government intervention. Both railroads have expressed the intention to get trains moving again as soon as possible, with the expectation that they will resume operations within days.
The government’s decision to intervene in the dispute was aimed at averting potentially dire economic consequences across Canada and the U.S. if train services remained disrupted for an extended period. The railroads had stopped accepting new shipments of hazardous materials and perishable goods as the lockout began, impacting various industries such as chemical businesses and food distributors. The auto industry, which relies heavily on rail for cross-border deliveries of engines, parts, and finished vehicles, was also at risk of facing disruptions.
The government’s move was met with criticism from the union, while the railroad companies expressed regret at the situation but acknowledged the need for government intervention in protecting Canada’s national interest. The decision to order arbitration came after unsuccessful negotiations between the parties, with concerns about the economic risks of allowing the lockouts to continue. The impact of the rail stoppage was expected to be significant due to the essential role that railroads play in transporting goods between Canada and the U.S.
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