Canada Ends Rail Stoppage, Moves to Restore Economic Stability

The Canadian government acted swiftly to end a significant rail stoppage, which had halted the country's top two railroads and threatened substantial economic damage. Labour Minister Steven MacKinnon announced the intervention, requesting a back-to-work order from the industrial relations board after failed negotiations between the companies and the union.

The Canadian government moved quickly on Thursday to end an unprecedented rail stoppage, announcing it would ask the country's industrial relations board to issue a back-to-work order that could come in a few days. Canada's top two railroads had locked out more than 9,000 unionized workers earlier in the day, triggering a simultaneous rail stoppage that business groups said could inflict hundreds of millions of dollars in economic damage.

Labour Minister Steven MacKinnon told reporters he was acting "to ensure that the activities of both of these rail companies immediately resume" and said he was referring the matter to the board for binding arbitration. MacKinnon said he was confident the board would issue a back-to-work order within the next few days.

"I assume that the trains will be running within days," he said. The companies - Canadian National Railway and Canadian Pacific Kansas City - and the Teamsters union blamed each other for the work stoppage after multiple rounds of talks failed to yield an agreement.

The decision marked a change of mind by the Liberal government of Prime Minister Justin Trudeau, which had long made clear its desire to see the matter settled at the bargaining table. "We gave negotiations every possible opportunity to succeed ... but we have an impasse here," said MacKinnon.

"And that is why we have come to this decision today."

(With inputs from agencies.)