However, in that year, CN was granted a one-year extension to avoid contract renegotiation while it implemented new federal rules to address worker fatigue issues.
[7] Several days before the shutdown, Minister of Labour Steve MacKinnon refused CN's request to order binding arbitration.
[6] On August 19, shipping firm Maersk stopped accepting shipments for Canada that would need to be transported by rail rather than by road.
[8] The shutdown began on August 22, when CN and CPKC failed to reach an agreement with the Teamsters Canada Rail Conference and locked out over 9,300 employees.
[7] Later on August 22, Minister of Labour referred the matter to the Canada Industrial Relations Board (CIRB), directing binding arbitration.
[4] One professor of business law, Gilles LeVasseur at the University of Ottawa, stated that the minister only has the power to refer the issue to the CIRB, but it was then up to the Board to determine what steps it should take.
[10] A professor of employment law at the University of Manitoba, Bruce Curran, commented that if the Board tried to order the workers back on the job, the union could seek judicial review of the decision, creating uncertainty and delays.
Also in early August, the CIRB advised the federal government that the freight operations of the two railways could not be deemed an "essential" service as their shutdown would not result in significant health and safety concerns.
[13] The Teamsters accused both companies of attempting to weaken safety protections with respect to rest periods, shift length and scheduling.
[14] CPKC denied it was asking to change any work rules, and said that its offer "fully complies with new regulatory requirements for rest and does not in any way compromise safety."
[16] On the first day of the shutdown, Premier Doug Ford of Ontario urged the parties to return to the bargaining table and keep the railways operating.
In a public statement, Ford stated: "The rail shutdown at CN and CPKC is already costing workers, transit users and businesses across the country, and we cannot afford to let things get worse.
[2] At the federal level, the New Democratic Party harshly criticized the Liberal government's decision to refer the matter to the Board for arbitration.
[11] At the time of the shutdown, the Bloc Québécois blamed the two railway companies for the economic crisis and for bargaining in bad faith.
[20] The shutdown would disrupt supply chains across North America as Canada ships most of its exports to the United States by rail.