Amid the labour dispute that has brought Canada’s two largest railways to a halt, Labour Minister Steven MacKinnon has invoked Section 107 of the Canada Labour Code, compelling all parties into binding arbitration. The move comes as the shutdown of Canadian National Railway (CN) and Canadian Pacific Kansas City Railway (CPKC) disrupts the transportation of over $1 billion in goods daily, with Alberta’s economy particularly at risk.
The federal government action comes swiftly after Premier Danielle Smith and key ministers released a joint statement on Thursday, voicing deep concerns over the severe consequences the rail stoppage could have on the province. Minister of Transportation and Economic Corridors Devin Dreeshen, Minister of Agriculture and Irrigation RJ Sigurdson, and Minister of Jobs, Economy and Trade Matt Jones joined Smith in warning that the disruption is already having far-reaching effects on various sectors, particularly agriculture, as the province enters the crucial harvest season.
“The stoppage will have devastating impacts on Canada’s economy, Canadian families, and communities across this country,” the statement read. “As harvest season begins and farmers look to get their product to market, the stoppage will affect not only those shipping agricultural products but also hurt Canada’s standing as an important partner in global food security.”
Alberta officials emphasized the potential long-term damage to Canada’s international reputation as a reliable trading partner, highlighting the risk of bottlenecks across other transportation modes, including ports and trucking operations. They stressed that even after the rail stoppage ends, clearing backlogs and returning to normal operations could take significant time, leading to delays and increased costs for Canadians.
While expressing respect for the collective bargaining process, the ministers argued that the collateral damage was too high, urging the federal government to act swiftly to protect the economy and Canada’s global standing.
