CN Resumes Operations Amid Ongoing CPKC Work Stoppage: Government Steps In

The Canadian government, under Labour Minister Steven MacKinnon, has intervened in a labor dispute involving Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC) by invoking Section 107 of the Canada Labour Code. The Canada Industrial Relations Board (CIRB) has been directed to impose final binding arbitration. CN has ended its lockout and initiated a recovery plan, with workers returning on August 23, while embargoes remain. However, the work stoppage at CPKC continues as the union disputes the Minister’s directive, potentially delaying the resolution. The simultaneous work stoppage and strike by over 9,000 unionized workers could result in significant economic losses.

Key Points:

• Government Action: Labour Minister invoked Section 107 of the Canada Labour Code, directing CIRB to enforce final binding arbitration for CN and CPKC.
• CN Operations: CN ended its lockout on August 22 and began a recovery plan, with workers returning on August 23 under ongoing embargoes.
• CPKC: CPKC's work stoppage continues with no clear resolution from CIRB as the union challenges the directive.
• Economic Risks: The dispute involving over 9,000 workers risks substantial economic losses.
• Next Steps: Binding arbitration has been initiated, and current labor agreements will be extended until new ones are reached.

KWE aims to mitigate any disruptions to client supply chains and will continue to monitor the situation as it develops. For further assistance, please contact your KWE representative.

For addition information refer to the updates below:

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