Question Period Note: SECTION 107 REFERRALS

Why did the Government make referrals under section 107 of the Canada Labour Code to end the rail disputes and remove workers’ right to strike? Will such referrals be made to resolve disputes in other sectors, like airlines and ports?

• Under Section 107 of the Canada Labour Code, the Minister of Labour may direct the Canada Industrial Relations Board (CIRB) to take action to secure industrial peace.

• The decision to invoke Section 107 is not taken lightly and is considered on a case-by-case basis.

• The government firmly believes that negotiated agreements are always best.

Rail Dispute Timeline and the Use of Section 107
• The collective agreements between CN and the TCRC (running trades) expired on December 31, 2023. The parties had been bargaining since September 20, 2023, and working with the Federal Mediation and Conciliation Service (FMCS) since March 1, 2024.

• The two collective agreements between CPKC and the TCRC (running trades and rail traffic controllers) expired on December 31, 2023. The parties had been bargaining since September 20, 2023, and working with FMCS since March 1, 2024.

• On August 22, 2024, CPKC initiated a lockout of TCRC employees (running trades and rail traffic controllers), who began simultaneous strike action.

• On August 22, 2024, CN initiated a lockout of TCRC employees (running trades).

• Section 107 of the Code provides the Minister the ability to refer any question to the Board or direct the Board to do things to maintain or secure industrial peace and to promote conditions favourable to the settlement of industrial disputes or differences.

• On August 22, 2024, under section 107 of the Code, the Minister of Labour and Seniors directed the Board to:

o order CPKC, CN and employees represented by the TCRC to resume operations and their duties;

o assist the parties in reaching a settlement of the outstanding terms of their collective agreements by imposing final binding interest arbitration; and

o extend the term of the existing collective agreements until new collective agreements are determined.

• On August 24, 2024, the Board, in accordance with the ministerial directions, ordered both railways to resume and continue operations and imposed binding arbitration to resolve the outstanding terms of their collective agreements. The existing collective agreements were also extended until new agreements could be determined.
• Operations began resuming at both CN and CPKC on August 26, 2024. During the week of September 9, 2024, both companies made statements indicating their networks had returned to normal service.

• On August 29, 2024, TCRC filed four applications for judicial review in Federal Court and the Federal Court of Appeal challenging the ministerial direction and the Board’s decision to implement the ministerial directions.

If Pressed

Judicial Review

• The Government is aware that the union filed applications for judicial review to challenge the Government’s referrals and the Board’s decisions.

• The matter is before the courts, and that’s all that can be said right now. We’ll be watching the results closely.

“These collective bargaining negotiations belong to CN Rail, CPKC and TCRC alone – but their effects, and the impacts of the current impasse, are being borne by all Canadians.”

– Statement by the Minister of Labour and Seniors on August 22, 2024

“As Minister of Labour, it is my assessment that the parties are at a fundamental impasse. Therefore, it is my duty and responsibility to invoke my authorities under the Canada Labour Code to secure industrial peace and deliver the short and long-term solutions that are in the national interest.”

– Statement by the Minister of Labour and Seniors on August 22, 2024