Canadian Labor Minister Rejects Railway Arbitration, Strike Looms

Canada’s Labor Minister Steven MacKinnon has rejected Canadian National Railway’s (TSX: CNR) request for arbitration, potentially leading to a nationwide work stoppage by unionized workers as early as next week. 

MacKinnon urged both the railway and the Teamsters Canada Rail Conference to negotiate a new contract, emphasizing their “shared responsibility” in reaching an agreement.

The union supports MacKinnon’s stance, stating that agreements are achievable through bargaining. They clarified that the main obstacles are company demands rather than union proposals. Meanwhile, Canadian National claims the union has rejected all offers without proposing counteroffers.

In preparation for the possible work stoppage, Canadian National has begun a phased shutdown of its rail networks, starting with hazardous material shipments. Canadian Pacific Kansas City (TSX: CP), facing similar negotiations with the same union, has also halted shipments of toxic goods and temperature-sensitive products like vegetables.

Both companies aim to prevent stranding hazardous and vulnerable shipments if no settlement is reached by August 22. They have announced plans to lock out workers if an agreement isn’t secured by that date.


Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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