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Canada Rail Lockout – Employees Ordered Back to Work
Further to our previous update, the Canada Industrial Relations Board (CIRB) imposed binding arbitration on the country’s two major railways — Canadian National Railway Co. (CN) and Canadian Pacific Kansas City Ltd. (CPKC).
On August 24th, 2024, the CIRB ordered CN and CPKC to resume rail service and the workers to resume their duties, effective Monday, August 26th, 2024, following the Canada Labour Minister’s direction.
What to Expect
Decision Appeal
The Teamsters Canada Rail Conference (TCRC), the union representing nearly 9300 rail workers, confirmed they will comply with the tribunal's decision, but pledged to appeal the ruling in court, arguing it "sets a dangerous precedent".
A Slow Return to Full Operation
Both CN and CPKC, in separate statements, have confirmed that they are working toward an organized return to full operations. However, it is expected to take several weeks to return to full service given that a phased shutdown at both railways kicked off roughly two weeks ago.
Addressing the Freight Backlog
Significant backlogs have already been caused and we expect delays over the next weeks and possibly months.
As a precaution, we suggest our clients to leverage Emergency Rail Services (ERS) where possible to expedite the movement of containers from West Coast ports as work resumes within the various terminals.
Please contact your local Delmar Representative should you have any distressed cargo that requires special urgent attention.
For additional information and assistance, please contact your local Delmar Representative.