Ottawa steps in to end railway lockout

‘Trains will be running within days, minister says as union blasts move to seek arbitration

- STEPHANIE LEVITZ & JIM RANKIN

The federal government is intervening to bring an end to a rail workers lockout that was poised to do major damage to Canada's economy- and its global reputation as a trading partner.

Labour Minister Steve MacKinnon said Thursday it had become clear that a bargained settlement between the Canadian National Railway Co., Canadian Pacific Kansas City Ltd and the two railways' unionized workers remained "elusive."

In response, MacKinnon said he would direct the Canada Industrial Relations Board to impose binding arbitration, and to extend the workers' collective agreements in the meantime.

"I assume that the trains will be running within days," MacKinnon told an afternoon news conference in Ottawa.

Upwards of 9,000 workers were locked out of their jobs early Thursday morning after months of unsuccessful contract negotiations, bringing rail shipments to a halt following days of slowdowns in anticipation that the two sides wouldn't be able to reach a deal.

The lockouts affected shipments of essential goods as well as commuter rail services in some of Canada's major cities. GO train services on the Milton line and at Hamilton GO Centre were suspended as a result of the stoppage - both are serviced by Canadian Pacific Kansas City rail traffic controllers. The Milton line stretches through Mississauga to Toronto's Union Station.

Business groups and trade organizations had warned of everything from a risk to the safety of Canada's drinking water - no chlorine could be shipped - to devastation for the grain industry if farmers were unable to get their product to market at harvest time.