Labour minister rejects CN Rail's call for binding arbitration as lockout looms

Labour Minister Steven MacKinnon has rejected CN Rail's request for binding arbitration in the company's labour dispute with Teamsters Canada Rail Conference (TCRC) — one week before a lockout could shut down the rail network.

«I would like to clarify that it is your shared responsibility — Canadian National Railways Company and the Teamsters Canada Rail Conference — to negotiate in good faith and work diligently towards a new collective agreement,» MacKinnon wrote in a letter obtained by CBC News.

The minister added that federal mediators remain available to both parties as negotiations continue.

«I trust that with continued effort, an agreement can be achieved promptly. The government firmly believes in the collective bargaining process and trusts that mutually beneficial agreements are within reach at the bargaining table,» MacKinnon wrote.

When asked for further comment, a representative of MacKinnon's office said the statement in the letter stands.

In a media statement, CN Rail spokesperson Jonathan Abecassis said the company is «disappointed» in the minister's decision and the company has made four offers since January.

«While we are disappointed the minister is choosing not use section 107 of the Canada Labour Code at this time, we hope TCRC will listen to the minister's strong message that they must get serious and engage meaningfully at the negotiating table. The minister must reconsider his decision if they don't,» he wrote.

Under the Canada Labour Code, the minister has the power to send parties in a labour dispute to binding arbitration, which would prevent a work stoppage.

This section was most recently used on June 26 by then-labour minister Seamus O'Regan to order binding arbitration between WestJet mechanics