Manitoba farmer, industry groups relieved rail shutdown is over

People in Manitoba's agricultural sector say they're glad they're once again able to ship their product now that thousands of rail employees are being ordered to return to work — even as railways warn full resumption of services will take weeks.

The Canadian Industrial Relations Board announced Saturday afternoon it will follow directions from federal Labour Minister Steve MacKinnon to impose binding arbitration between the Teamsters Canada Rail Conference and the country's two largest railways — Canadian National Railway and Canadian Pacific Kansas City.

The decision comes days after freight shipments across the country were put on standstill, following a labour lockout which began Thursday after contract negotiations between the union and the two employers reached an impasse.

Pam Bailey, who runs a farm near Elie, about 40 kilometres west of Winnipeg, said growers can now breathe a sigh of relief.

"It's unfortunate that it took the federal government to impose this, but at least it's some positive action," she said.

"These are very important times right here on the farm especially, as I'm sure there's other industries that are feeling these strains, for sure."

The rail lines move about $50 million worth of grain every day, according to the Western Canadian Grain Elevator Association.

Executive director Wade Sobkowich said the labour action couldn't have come at a more critical time for grain growers, who he said are just about 20 per cent done with harvest.

"We really need to move that grain. This is the period of time when the world demands Canadian grains and oilseeds," he said. "It's going to take a week for every day we were down."

Service resumption will take time: supply chain expert

Before the decision, Teamsters had imposed a now-void deadline for CN Rail workers to strike, which was set to expire Monday. CPKC workers were already on the picket line.

The union said in a statement it will "lawfully comply" with the board's decision, but that it plans to challenge the ruling in federal court.

Two weeks before the stoppage, both railways had imposed a phased shutdown of their services. CPKC said Saturday a full resumption will likely take several weeks.

Barry Prentice, director of the University of Manitoba Transport Institute, said that's "not just chatter."

"The whole thing is scheduled, and very tightly scheduled, to maximize the throughput. So you have to start the trains in a certain order, and get all the crews together and the cars and everybody in the right place," Prentice said.

"But I think … people do accept, 'OK, I'm going to get to ship my grain. Maybe I'll have to wait another week before I do it,'" he added. "At least they've got some comfort to know that it's not uncertain.'"

Problems 'far from fixed': Fertilizer Canada

Fertilizer Canada, which represents one of the biggest industries relying on the rails for transportation, said in a statement Saturday it supports the federal governments decision, but that the stability of the country's supply chain is "far from fixed."

CEO Karen Proud said she would like to see fertilizer recognized as an essential product, and for the Labour Code to be updated so binding arbitration terms are mandatorily pre-negotiated to expedite future labour negotiations.

She said the industry loses between $55 million to $66 million in sales per day when its products cannot move.

"We not only have a nitrogen fertilizer plant in the province of Manitoba, but we also have farmers that are counting on getting their products," she said, adding that fertilizer is used throughout the year, not just in the spring and fall.

"There's a potential for us to lose customers.… There are many countries around the world whose growing season is just starting next month."

In the union's statement, Teamsters Canada Rail Conference president Paul Boucher said the board's decision set "a dangerous precedent," saying the rights of workers had been "significantly diminished."

"It signals to corporate Canada that large companies need only stop their operations for a few hours, inflict short-term economic pain, and the federal government will step in to break a union," he said, adding that the union will continue to fight to improve working conditions, including better rail safety.

The union has said the companies are pushing for weaker protections on rest periods and scheduling. 

"I'm sympathetic to the workers, no doubt," said Bailey. "It's not ideal, but at least it's some progress in the right direction — hopefully for all the parties involved."

Binding arbitration will begin on Aug. 29. The Canadian Industrial Relations Board has ordered workers and the two companies to resume services by Monday.