Canada’s federal government has acted decisively to resolve an industrial dispute that recently halted operations at two of the nation’s largest railways, jeopardizing supply chains across North America.
Labour Minister Steve McKinnon has announced that both sides will enter final binding arbitration, while instructing the railways to resume services at the earliest opportunity.
Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC) had locked out approximately 9,300 workers as of Thursday after failing to reach an agreement with the Teamsters union.
With about 75% of Canada’s exports traveling to the U.S. predominantly by rail, a prolonged conflict could have severely impacted the transportation of essential goods, including grains, beans, potash, coal, and timber.
