Canadian Government Intervenes to End Rail Stoppage

The Canadian government has announced a back-to-work order to resolve an unprecedented rail stoppage. This follows the lockout of over 9,000 unionized workers by Canadian National Railway and Canadian Pacific Kansas City, which threatened severe economic damage. Labour Minister Steven MacKinnon also initiated binding arbitration between the involved parties.

The Canadian government acted swiftly on Thursday to terminate an unprecedented rail stoppage, announcing its request for the industrial relations board to issue a back-to-work order imminently. More than 9,000 unionized workers were locked out by Canadian National Railway and Canadian Pacific Kansas City, causing a simultaneous halt in rail operations that could cost the economy hundreds of millions of dollars.

Despite initial hesitation, Labour Minister Steven MacKinnon moved forward with the directive, targeting an end to the lockout by 6 p.m. ET (2200 GMT). He confirmed the resumption of rail operations within days, alongside a binding arbitration process for new labor agreements. Both the companies and unions blamed each other for the deadlock in negotiations.

Prime Minister Justin Trudeau stressed the importance of collective bargaining but justified the intervention due to severe impacts on supply chains. This decision marked a policy shift for his government. Business groups welcomed the move, while unions and the New Democratic Party criticized it. The stoppage had significantly disrupted shipments and commuter rail services, highlighting the strategic importance of rail networks in Canada.

(With inputs from agencies.)