The Teamsters union announced that workers from Canadian National Railway (TSX:CNR) have agreed to return to work following government intervention to end the lockout. Similarly, Canadian Pacific Kansas City (TSX:CP) is also in anticipation of a return to work.
Both Canadian National Railway and Canadian Pacific Kansas City experienced a halt in freight traffic, marking a historic occasion in Canadian history. The federal government intervened by imposing binding arbitration to resolve the labor disputes.
Labor Minister Steve MacKinnon took action to settle the collective bargaining agreements through binding arbitration, with expectations of trains resuming operations within a few days. Canadian National Railway opened trading at C$157.00 per share, while Canadian Pacific Kansas City opened at C$110.00 per share.
Update: The Teamsters union has issued a 72-hour strike notice to Canadian National Railway, shortly after indicating the removal of picket lines and the resumption of worker duties.
The resolution of the labor conflict was welcomed by CN, although they expressed disappointment at not reaching a negotiated deal at the bargaining table. Both railways are now preparing to resume operations pending final binding arbitration orders from the Canada Industrial Relations Board.
The government intervention was deemed necessary due to the high stakes involved for all parties, as the economy was threatened by the lockout of 9,300 workers. CN Rail is a key player in transporting natural resources and goods throughout North America, while Canadian Pacific Kansas City operates as a single-line transnational railway linking Canada, the United States, and Mexico.
For those interested in discussing the ongoing situation with these Canadian railway stocks, there are platforms such as Canadian National Railway Company and Canadian Pacific Kansas City Ltd. Bullboards, as well as Stockhouse’s stock forums and message boards.
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