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"The Liberal government's decision to undermine 9,300 Canadian rail workers with binding arbitration sends a message to big corporations: Being a bad boss pays off," said the leader of the New Democratic Party.
The Canadian government on Thursday moved to end a lockout of workers at the country's two major rail corporations by forcing the two sides into arbitration, drawing sharp criticism from the union, which is challenging the move, and left-leaning political figures, including an ally of Prime Minister Justin Trudeau.
Canadian National (CN) and Canadian Pacific Kansas City (CPKC) locked out about 9,300 engineers, conductors, and yard workers starting Thursday morning, shutting down the vast majority of the country's freight operations—a major disruption to the national economy and supplies chains across North America. The two sides had failed to reach a labor agreement after months of negotiating.
Labor Minister Steven MacKinnon made the announcement Thursday afternoon, referring the arbitration to the Canada Industrial Relations Board and ordering previous collective bargaining agreements to be extended until the CIRB process is complete. He said he expected trains to be running again within days.
The government's move was widely seen as a victory for company executives and a loss for 9,300 workers, whom worker advocates say were effectively stripped of their right to collectively bargain.
"By resorting to binding arbitration, the government has allowed CN and CPKC to sidestep a union determined to protect rail safety," Teamsters Canada Rail Conference (TCRC) president Paul Boucher said in a statement. "Despite claiming to value and honor the collective bargaining process, the federal government quickly used its authority to suspend it, mere hours after an employer-imposed work stoppage."
Teamsters Canada Rail Conference's announced Friday it would challenge the constitutionality of the government move.
Jagmeet Singh, leader of the left-leaning New Democratic Party, which Trudeau's centrist Liberal Party relies on for voting support in Parliament, was blisteringly critical of his strategic ally following the government's announcement.
"The Liberal [government's] decision to undermine 9,300 Canadian rail workers with binding arbitration sends a message to big corporations like CN and CPKC: Being a bad boss pays off," Singh wrote on social media. "Justin Trudeau's actions are cowardly, anti-worker, and proof that he will always cave to corporate greed."
The Liberal govt's decision to undermine 9,300 Canadian rail workers with a binding arbitration sends a message to big corporations like CN & CPKC:
Being a bad boss pays off
Justin Trudeau's actions are cowardly, anti-worker, & proof that he will always cave to corporate greed. pic.twitter.com/p7U1mE4hlv
— Jagmeet Singh (@theJagmeetSingh) August 22, 2024
Singh, a member of Parliament from the Vancouver metropolitan area, had warned Trudeau earlier in the week not to intervene, arguing that there was an ugly history of the Canadian government doing so in favor of industry interests. Trudeau and other government officials had said, before Thursday afternoon, that they preferred the two sides hash out their differences at the negotiating table.
However, the train stoppage led to mounting industry pressure, not just from the rail companies but also broader business interests who expressed concern about the impact on Canada's export-driven economy. Media outlets in Canada and the U.S. focused on the potential downsides of a protracted stoppage. Half of the Canada's exports are moved by rail, according to a railway industry lobby group, and more than $700 million USD worth of goods move on the country's tracks per day.
"The two major railways in Canada manufactured this crisis, took the country hostage, and manipulated the government to once again disregard the rights afforded to working-class Canadians," said Boucher, the union leader. "The TCRC is deeply disappointed by this shameful decision."
Rail operations remained in a complicated limbo on Friday as TCRC seemingly figured out how to react to the government's move. Initially, the union announced that while the CPKC work stoppage was ongoing, pending CIRB action, its CN members would resume work—and the company's trains began running across Canada at 7:00am—but later in the morning the union issued a 72-hour strike notice to CN.
The labor dispute centers on worker hours and conditions, and has parallels to a U.S. dispute in 2022, in which the U.S. government also stepped in to force a deal, angering many union leaders and working-class advocates.
"The railroads don't care about farmers, small businesses, supply chains, or their own employees," a union president said. "Their sole focus is boosting their bottom line, even if it means jeopardizing the entire economy."
Both of Canada's major freight rail companies—key cogs in North America's supply chains—locked out workers and shut down operations on Thursday due to a labor dispute over worker hours and conditions, as a union leader said the companies were holding the Canadian economy "hostage."
The unprecedented stoppage comes with high stakes for the 9,300 affected engineers, conductors, and yard workers—and the country's export-driven economy. The two companies, Canadian National (CN) and Canadian Pacific Kansas City (CPKC), own almost all of the tracks and haul more than $700 million USD worth of goods per day.
The Teamsters Canada Rail Conference, which represents the affected workers across both companies, said the two corporations had refused many of its "good faith" offers.
"Neither CN nor CPKC has relented on their push to weaken protections around rest periods and scheduling, increasing the risk of fatigue-related safety issues," the union said in a statement.
Paul Boucher, the union's president, said that "CN and CPKC have shown themselves willing to compromise rail safety and tear families apart to earn an extra buck. The railroads don't care about farmers, small businesses, supply chains, or their own employees. Their sole focus is boosting their bottom line, even if it means jeopardizing the entire economy."
🚂 The men and women who keep our CN and CPKC trains running want decent working conditions that ensure safety for us all🚨. It’s time to give them our support.💪#Canlab pic.twitter.com/bGXQC1yuo1
— Teamsters Canada (@TeamstersCanada) August 21, 2024
Boucher said in a video statement on social media that the companies were holding Canada's economy "hostage" in an attempt to get the federal government, led by Liberal Prime Minister Justin Trudeau, to force a binding arbitration agreement on the workers, an idea that business groups such as the Canadian Chamber of Commerce support.
So far, Trudeau's government hasn't done so and has instead pressured the two sides to come to a deal.
"Millions of Canadians, of workers, of farmers, of businesses right across the country are counting on both sides to do the work and get to a resolution," Trudeau told reporters Wednesday.
The Liberals, a centrist party, rely on the votes of the smaller New Democratic Party in Parliament. NDP was founded in part by organized labor and has warned Trudeau not to force the rail employees back to work.
"For too long we have seen Liberals and Conservatives interfere in these types of labor disputes to the advantage of the employer, to the detriment of the worker," Jagmeet Singh, NDP's leader, told reporters on Monday. "That is wrong, and we will oppose that."
In 2022, the U.S. federal government did take such action in a railway labor dispute. The U.S. Congress and President Joe Biden forced railworkers into an agreement that four key unions didn't agree to—angering many working-class Americans and progressive advocates, who argued that the right to strike had been nullified by the government intervention.
Canada has previously seen such federal interventions—or the threat of them, which can force workers' hand in negotiations—but in the past, disputes have occurred with just one of the major rail companies or the other, with their contracts expiring in alternating years.
This time, the timing has allowed for an industry-wide dispute, and a larger transportation disruption, including not just freight rail but also some passenger rail services that operate on lines owned by the two companies. There are no traffic controllers on the CPKC tracks, so passenger rail can't operate, The Canadian Broadcasting Corporationreported.
The companies have used the disruption as part of the rationale for government action. CPKC openly called for binding arbitration on Thursday, saying in a statement that an agreement is "not within reach" and that the union "continues to make unrealistic demands that would fundamentally impair the railway's ability to serve our customers with a reliable and cost-competitive transportation service."
The union argues that CPKC wants to "gut the collective agreement of all safety-critical fatigue provisions" and CN is trying to extend work days in western provinces, raising what the union calls a "a fatigue-related safety risk," The Guardianreported.
CN's net income for 2023 was $4 billion USD, while CPKC's was $2.9 billion USD.
The only real hope of avoiding climate disaster lies in dramatically ramping up the transition to clean energy by building new wind and solar farms at breakneck speed.
The opening of the Trans Mountain Pipeline expansion this month—widely celebrated in the media—reminds us that Canada is still very much in the grip of Big Oil.
That $34 billion expansion was financed by Ottawa, and it amounts to a massive public subsidy for the oil industry—at a time when we should urgently be financing renewable energy, not fossil fuels.
The renowned U.S. climatologist James Hansen famously said the oilsands were such a “dirty, carbon-intensive” oil that if they were to be fully exploited, it would be “game over” for the planet.
Over the past four years, Ottawa has provided $65 billion in financial support for oil and gas, but only a fraction as much for renewable energy.
Yet here we are, applauding the tripling of the pipeline’s capacity to carry oil from the oilsands, even as that moves us closer to “game over.”
A report this month revealed that the world’s top climate scientists believe the world is headed in a frightening direction—toward more than 2.5°C degrees of warming, charging past the international target of 1.5°C, beyond which fires, floods, and heatwaves become seriously unpredictable.
Today, we’re at just 1.2°C of warming, and look at the mess we’re in. Already this season, wildfires are burning out of control in B.C. and Alberta.
Climate scientists have been clear: The only real hope of avoiding climate disaster lies in dramatically ramping up the transition to clean energy by building new wind and solar farms at breakneck speed.
But this isn’t happening, even though the price of wind and solar power has become very competitive. That was supposed to be the trigger point at which the market would begin working in our favour, with renewables cheaper than fossil fuels, facilitating the transition to clean energy.
Renewables keep getting cheaper. The price of solar power has plunged by 90%, yet Big Oil remains dominant.
That’s because, with its long-established monopoly and extensive government support, Big Oil is far more profitable—and therefore more attractive—to major financial investors than the struggling, competitive firms that make up the budding renewable sector, notes Brett Christophers, a political economist at Uppsala University in Sweden.
Clearly, given the climate emergency, we can’t just leave the vital task of transitioning to renewables up to the whims of financial investors, whose only interest is maximizing their returns.
Governments must become a lot more involved, and they have to switch their loyalty from Big Oil to renewables.
The Biden administration has moved in this direction, with sweeping measures aimed at doubling renewable capacity in the U.S. over the next decade. Meanwhile, the Trudeau government is locked into serving the immensely powerful oil industry.
Over the past four years, Ottawa has provided $65 billion in financial support for oil and gas, but only a fraction as much for renewable energy. Its main program for subsidizing renewables provides less than $1 billion a year, says Julia Levin, an associate director with Environmental Defence.
The extent of Ottawa’s willingness to accommodate Big Oil became clear in 2018 when it took over the Trans Mountain Pipeline expansion, rather than let the project collapse after its original backers threatened to pull out amid intense environmental opposition.
Now Ottawa is planning to spend $10 billion, possibly much more, subsidizing Big Oil’s futile but costly efforts to reduce its carbon emissions through “carbon capture and storage”—despite ample evidence the technology is highly ineffective at reducing such emissions.
This enables Big Oil to pretend it’s serious about reducing emissions, lulling Canadians into believing we’re making progress on climate, when we’re really just spinning our wheels and wasting a lot of public money in the process.
For years, there was the comforting thought that, when the horrors of climate change truly became clear, humans would be smart enough to figure out a solution. That turned out to be true. It’s just that we haven’t figured out how to override the powerful so we can implement the solution.