Feds reject request for rail arbitration, setting up replay of WestJet, BC Ports woes

The federal government has rejected a request from Canada’s rail companies for binding arbitration in their labor dispute, essentially opening the door for a strike and lockout next week.On Thursday, Liberal Labour Minister Steven MacKinnon has rejected a request by Canadian National Railway to initiate binding arbitration with the Teamsters union, a spokesman for the minister said on Thursday.In a letter to CN's lawyers, MacKinnon said it was the “shared responsibility” of the company and the union to negotiate in good faith. The letter, which was delivered Wednesday, was released by the Teamsters the next day..It also presumably applies to Canadian Pacific in its own dispute with the Teamsters. If it sounds eerily familiar that’s because the Liberal government sent out mixed messages to WestJet in its dispute with the mechanics union that saw it walk off the job on the busiest summer travel period of the year over thee Canada Day long weekend.The unexpected walkout prompted the airline to cancel more than 1,100 flights and stranding 150,000 travellers. Although it was quickly resolved, WestJet has yet to recover from the debacle.In this case, the writing has been on the wall for weeks. Except the union, which represents 9,300 conductors, engineers and yard workers is negotiating with both rail carriers at the same time.Talks between the railroads have broken down over the usual issues of wages and benefits and each side has said they are either prepared to lock workers out on August 22, or alternatively, walk off the job..If so it would mark the first time both railroads have been simultaneously shut down in Canada’s history, causing potentially billions of dollars of economic damage.On Thursday, Alberta Premier Danielle Smith called on the feds to do “everything in their power” to avert a crippling strike, including passing back to work legislation.“I can tell you, it would be devastating to have both of our major rail lines, both CPKC and CN, shut down at the same time, shutting down all rail transport in the country for anything longer than a couple of days,” she said.“You have to imagine that anyone who is producing anything for transport by rail if it starts backing up, they’ve got to stop production. So it’s pretty clear to me that this is not something that can continue on for any length of time.”Smith said CN in particular still has not fully recovered from the BC port strike in the summer of 2023.Then, about 7,400 workers at more than 30 BC ports initially went on strike for 13 days starting Canada Day. That job action ended with word of a tentative deal, which the union’s leadership then went on to reject without taking it to the membership for a vote. More strike action ensued, which was then ruled illegal by the Canada Industrial Relations Board, because the proper notice had not been served.Meanwhile, the NDP has issued a strong warning to the federal cabinet, urging it to refrain from intervening in a potential nationwide rail shutdown. "The right to strike is a fundamental aspect of labour relations in Canada and must be preserved to ensure fair and equitable negotiations," wrote MP Matthew Green (Hamilton Centre, Ont.), the NDP’s labour critic, in a letter to the cabinet. Green advised the government to "maintain a neutral stance" in the dispute.Green criticized the rail companies' lockout threat as an "abrupt move" and warned against forced arbitration. "Such an intervention would effectively undermine the collective bargaining process, forcing workers into a position where their rights and working conditions could be unilaterally altered without their consent," he stated.The NDP has a history of opposing back-to-work legislation, as seen in a 2019 CN Railway strike that ended after eight days without intervention. At the time, NDP leader Jagmeet Singh stated, "Workers are entitled and have the right to be able to strike... They should not at all be forced back to work."The rail sector has seen several past interventions by Parliament to end strikes, including in 1950, 1966, 1973, 1987, 1995, and 2012. However, the NDP continues to advocate for free negotiation without government-imposed pressure, a stance reiterated by Singh during the 2019 dispute: "We want people to be able to negotiate freely without that type of pressure. These workers have serious concerns."...with files from Blacklock's Reporter.