CP to resume operations after railroad, Teamsters agree to binding arbitration

Deal averts supply chain crisis

CP says it will begin restarting operations today. (Photo: Shutterstock)

Canadian Pacific Railway said it will resume operations after reaching an agreement with Teamsters Canada Rail Conference to resolve their labor dispute through binding arbitration.

CP (NYSE:CP) and the Teamsters announced the deal early Tuesday, a little more than two days after the company shut down its rail network at the start of a work stoppage. The company and the union had accused the other of initiating the work stoppage. 

The deal averts what was set to become yet another supply chain crisis. Shipments have been backed up in Canada and the U.S., while the ports of Vancouver and Montreal were likely to face significant congestion issues. 

“This agreement enables us to return to work effective noon Tuesday local time to resume our essential services for our customers and the North American supply chain,” CP President and CEO Keith Creel said in a statement

Dave Fulton, the spokesperson for the Teamsters Canada Rail Conference, said the union’s decision to agree to binding arbitration was “not taken lightly.” The union represents over 3,000 CP conductors, engineers and train and yard workers.

“While arbitration is not the preferred method, we were able to negotiate terms and conditions that were in the best interest of our members,” Fulton said in a statement, adding that pay and pensions continue to be “stumbling blocks.” 

The union and CP have been working with federal negotiators. 

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