- Traffic at Canada’s two largest rail companies, Canadian National Railway (TSX:CNR) and Canadian Pacific Kansas City (TSX:CP), is set to resume, as a work stoppage ends following a decision by the federal labour board
- The Canada Industrial Relations Board issued an order prohibiting any further labour stoppages, including lockouts or strikes, during the arbitration process
- While CN admitted that it was disappointed that an agreement couldn’t be reached at the bargaining table, the company was satisfied that this order brings an end to the uncertainty that had disrupted supply
- Canadian National Railway last traded at C$158.71 per share and Canadian Pacific Kansas City last traded at C$110.84 per share
Traffic at Canada’s two largest rail companies is set to resume, as a work stoppage ends following a decision by the federal labour board.
Canadian National Railway (TSX:CNR) and Canadian Pacific Kansas City (TSX:CP) halted operations last Thursday, locking out workers and causing disruptions to freight traffic across the country as well as commuter lines in the Toronto, Montreal and Vancouver regions.
The Canada Industrial Relations Board (CIRB) has issued an order prohibiting any further labour stoppages, including lockouts or strikes, during the arbitration process. This effectively nullifies the recent strike notice issued to CN by the Teamsters.
In a media statement, CN confirmed that it will comply with the order, which also extends the current collective agreement until a new one is finalized.
For the past nine months, CN had negotiated to reach a deal, offering proposals with higher pay, longer rest periods, more predictable schedules and a voluntary mobile workforce.
While CN admitted that it was disappointed that an agreement couldn’t be reached at the bargaining table, the company was satisfied that this order brings an end to the uncertainty that had disrupted supply.
Meanwhile, CPKC will also resume railway operations on Monday after the CIRB order, which mandates CPKC to restart operations and requires Teamsters Canada Rail Conference (TCRC) employees to return to their duties.
According to a news release, the CPKC team is currently implementing its restart plan to ensure the resumption of rail service across Canada.
CPKC has confirmed it will fully comply with the CIRB order, ending the lockout that began on Thursday. CPKC has requested TCRC employees to return to work quickly to prevent further disruptions to supply chains.
The CIRB intends to convene a case management meeting with the parties on Thursday to discuss the imposition of final binding interest arbitration.
CN Rail transports more than 300 million tons of natural resources, manufactured products and finished goods throughout North America every year across its nearly 32,000-kilometre rail network and related transportation services.
Canadian National Railway (TSX:CNR) last traded at C$158.71 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) last traded at C$110.84 per share.
Both stocks have risen more than 2.5 per cent over the past week.
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(Top image: CN Rail and CPKC)
