Labor minister urges last-minute deal to avert rail shutdown as deadline looms

As a potential national freight shutdown approaches, the federal labor department is pressing for a last-minute agreement between Teamsters Canada and the country’s major railways to avoid significant economic disruption. Blacklock's Reporter says the deadline for a possible strike or lockout is set for 12:01 a.m. Thursday.Labour Minister Steven MacKinnon emphasized the urgency of the situation, calling for a deal to be reached to prevent a halt in rail services. “Get a deal on the table,” MacKinnon urged, adding, “Workers, farmers, businesses, and all Canadians are counting on it.”MacKinnon is scheduled to meet Wednesday with leaders from the Teamsters Canada Rail Conference and executives from Canadian National and Canadian Pacific, the nation’s two largest railways. A shutdown of rail services would have wide-ranging impacts on the Canadian economy, according to various industry groups.The Canadian Federation of Independent Business warned that a shutdown "could be devastating for small businesses," while the Canadian Meat Council expressed concerns over "unprecedented damage to industry." The Canadian Business Council highlighted the potential for "overall harm" in an economy where rail transport is considered "the backbone."Railways in Canada are responsible for transporting the majority of surface freight, including 80% of grain, oilseed, and chemical exports, as well as 75% of fertilizers and propane. Over 250 million tonnes of minerals, wood products, auto parts, and other goods are shipped annually via rail.The Teamsters union, representing approximately 10,000 locomotive engineers, conductors, and other railway employees, has been without a contract since January 1. A similar labor dispute in 1973 led to a five-week shutdown of Canadian National Railway, prompting Parliament to pass emergency legislation to end the strike.While Parliament is currently in a 13-week recess and not scheduled to return until September 16, the prospect of back-to-work legislation remains contentious. NDP leader Jagmeet Singh has previously stated his firm opposition to such measures, contrasting with the unanimous consent given by New Democrats to back-to-work legislation during the 1973 strike.The last significant rail shutdown occurred in 2022, disrupting national freight traffic for 60 hours before Canadian Pacific and the Teamsters reached an agreement through binding arbitration.

Labor minister urges last-minute deal to avert rail shutdown as deadline looms

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