OTTAWA, ONTARIO, CANADA — Locked out union workers at the Canadian National Railway (CN) were expected to be back on the job Aug. 23 after the Canadian Minister of Labor said he will exercise his authority under the direction of the Canada Industrial Relations Board (CIRB) to impose final binding arbitration and for railway operations to resume.

CN announced the end of its lockout on Aug. 22 — just hours after it began.

The situation with the nation’s other major rail carrier, Canadian Pacific Kansas City (CPKC), is less clear. The company and leaders of the Teamster Canada Rail Conference (TCRC) were scheduled to meet with the CIRB on Aug. 23, and CPKC said it was “already preparing for the safe and orderly resumption of our rail network and further details about timing will be provided once we receive the CIRB’s order.”

However, the CPKC noted that in its initial meeting with the CIRB and TCRC on Aug. 22, the union leaders “refused to discuss any resumption of service, and instead indicated that they wish to make submissions to challenge the constitutionality of the Minister’s direction, as well as the CIRB’s discretion to proceed with any order.” 

The TCRC on its website said: “Despite the Labor Minister’s referral, there is no clear indication that the CIRB will actually order an end to the labor dispute at CPKC.”

It’s the first time the two largest railroads in the country have shut down at the same time. The two rail companies had locked out more than 9,000 unionized workers, halting rail service that, in a prolonged work stoppage, could cause hundreds of millions of dollars in economic damage, including shutting down grain transportation as the fall harvest begins.

“The Canadian government has recognized the immense consequences of a railway work stoppage for the Canadian economy, North American supply chains and all Canadians,” said Keith Creel, president and chief executive officer of the CPKC. “The government has acted to protect Canada’s national interest. We regret that the government had to intervene because we fundamentally believe in and respect collective bargaining; however, given the stakes for all involved, this situation required action.”

Although its lockout has ended, CN also expressed frustration at not being able to hammer out an agreement through collective bargaining.

“While CN is satisfied that this labor conflict has ended and that it can get back to its role of powering the economy, the company is disappointed that a negotiated deal could not be achieved at the bargaining table despite its best efforts,” CN said.

The union and companies said the labor disagreement has been mostly related to issues of scheduling, availability of labor and demands for a better work-life balance.

More than 90% of agricultural products, particularly grains and oilseeds, move by rail in Canada. In 2023, 25% of all value derived from Canada’s agricultural and related product exports to the United States were by rail, averaging over $40 million per day, according to the Foreign Agricultural Service (FAS) of the US Department of Agriculture.

Grain handling and other industry groups had urged the Canadian government to prevent a stoppage, noting Canada’s railways transport about C$380 billion ($279.5 billion) worth of goods annually.

In a statement released before the end of the CN lockout was announced, the National Grain and Feed Association (NGFA) emphasized that the impact of a work stoppage would be felt outside of Canada.

“The agricultural industries of the US, Canada, and Mexico are inextricably linked,” the NGFA said. “A shutdown to any part of the system quickly reverberates across the entire system. This supply chain depends on the freight rail services provided by CN and CPKC. Canada, as the world’s leading exporter of canola and potash fertilizer, and the third-largest exporter of wheat, plays a critical role in global agriculture and must have access to rail service to maintain that role.”