Back-to-work Order Issued for Major Canada Railroads: Union Compliance and Upcoming Lawsuit

Back-to-work orders have been issued for Canada’s two major railroads, Canadian National (CN) and Canadian Pacific Kansas City (CPKC), in a move aimed at resuming operations crucial for the North American economy. The Canadian Industrial Relations Board (CIRB) ordered employees back to work after a major labor dispute led to significant disruptions in rail operations, affecting shipments worth over CA$1 billion daily.

The Teamsters union has stated its intention to comply with the order but will file a lawsuit challenging the arbitration ruling. Union representatives argue that this decision compromises the rights of workers across Canada. Labour Minister Steven MacKinnon emphasized the urgent need for the railroads to resume operations to prevent economic fallout.

Impacts of the Back-to-work Order

Railroads play a vital role in the supply chain, and the lockout has caused ripple effects across industries that rely on rail transport for raw materials and finished goods. Businesses warned of potential production cuts or shutdowns without rail services.

Future of Rail Operations

While CN has already resumed operations, CPKC's workers have faced ongoing delays. Both railroads aimed to recover operations quickly to mitigate impacts on supply chains. However, they anticipate weeks of operational complications due to prior shutdowns.