CTA Reacts to CIRB Ruling on Potential Rail Strike, Impacts on Trucking and Supply Chain

Late last week, the Canada Industrial Relations Board (CIRB) determined that railway services do not meet the criteria of essential services under section 87.4 of the Part 1 of the Canada Labour Code. The Board is now placing the union and railways back in the position they were in on May 9, 2024, when the ministerial referral was made.

Accordingly, the Board is ordering a 13-day cooling-off period for the purpose of section 89(1)(d) of the Code.

In its opinion, the Board acknowledges that a labour dispute in the rail industry could result in significant hardship given that the Canadian economy depends largely on a reliable and integrated supply chain to get commercial goods to market. However, the Board felt that the examples given do not meet the very narrow legal test that the Board must apply, that is, whether the work stoppage would result in an immediate and serious danger to the safety or health of the public.

In its ruling CIRB stated:

"The Board understands that many individuals or organizations may view this list or this document as a definitive statement as to what services are considered essential. However, that document and the list of "essential" services were developed in a specific context and for a different purpose than the objective pursued by the legislative requirements that apply during a labour dispute…There is no doubt that a work stoppage … would result in inconvenience, economic hardship and, possibly, as some groups and organizations have suggested, harm to Canada's global reputation as a reliable trading partner. While such possible harm is by no means insignificant, these are not factors that are to be considered by the Board when addressing a referral under section 87.4 of the Code."

"There is no question that long term, potential labour disruptions of this magnitude will send the message to the world that Canada's business environment is becoming less and less appealing to invest in," said CTA president Stephen Laskowski. "

CTA has heard from members that traditional rail customers have been securing additional truck capacity since February based on concerns over labour disruptions.

Although current economic conditions have generated some additional capacity in the trucking industry, this capacity will have its limits based on commodities and lanes.

CTA will be working with the Canadian Chamber of Commerce and other business groups throughout this potential railway strike to develop a joint business community response to Ottawa.

Share This Story

Public link

Please use the above public link if you want to share this noodl on another website.