A union representing more than 9,000 Canadian railroad workers on Friday announced its intention to appeal the federal government's decision to introduce binding arbitration to end an unprecedented shutdown of the country's two major freight rail carriers. This was reported by Reuters , according to UNN .
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The Teamsters union has also announced its intention to go on strike on Monday at Canadian National Railway (CNR.TO), Canada's largest railroad carrier.
The actions are the latest twist in labor disputes with CN and Canadian Pacific Kansas City (CP.TO), which locked out Teamsters union members on Thursday, causing a simultaneous halt to rail service. Business groups have warned that this could cause hundreds of millions of dollars in losses to the economy.
This situation further complicates the work of the Canadian Industrial Relations Board (CIRB), which on Friday held hours of meetings with representatives of trade unions and railroads after the government asked them to resolve the situation.
The Teamsters union reported on Friday evening that the parties had completed a full day of negotiations, during which it said the government does not have the absolute power to end labor action.
“The union will lawfully comply with any CIRB decision and is prepared to appeal to federal court if necessary,” the statement said.
In its statement, CN noted that it will continue to implement the recovery plan until the CIRB makes a decision.
Labor Minister Stephen McKinnon, citing risks to the economy, also asked the board to introduce binding arbitration in negotiations between the union and companies, as well as to immediately resume the operation of both railroads.
Canada, the world's second largest country, is heavily dependent on railroads to transport a wide range of goods and raw materials.
The Canadian Chamber of Commerce expressed disappointment with the decision of the Teamsters union to challenge the government's directive.
“This action will continue to harm our economy and jeopardize the well-being and livelihoods of Canadians, including both unionized and non-unionized workers in many industries,” the group said in a statement.
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