CN must restore union's wheel shop work, arbitrator rules

Editor's note: This story has been updated.

An arbitrator has ordered CN to reopen its Transcona Wheel Shop in Manitoba, compensate affected workers and return rail work to in-house production in Canada, Unifor announced today.

The union's grievance case stems from CN's decision to close the wheel shop, traction motor shop and air brake shop in Winnipeg in May 2020 during the pandemic, then contract out work normally performed by union members, Unifor officials said in a press release.

In an earlier decision, the arbitrator found CN had violated a collective labor agreement by failing to properly notify Unifor, failing to consult the union before moving ahead, and undermining the union's ability to protect its members' work, according to Unifor. The arbitrator also found those violations were serious, not just technical, and left the question of remedy open until a later ruling; that ruling came last week.

In the latest ruling, the arbitrator ordered CN to reinvest in and modernize the wheel shop in the Winnipeg suburb known as Transcona, restore wheel shop production to levels that meet or exceed pre-shutdown levels, and hire at least 20 new bargaining unit employees as part of the startup.

The award does not require CN to reopen the air brake and traction motor shops, but it does require CN to bring back 85% of heavy bad order locomotive work in-house, with the majority of that work remaining in Transcona, Unifor officials said.

"Unifor will now focus on ensuring CN fully implements this award. That means pressing the company to deliver its startup and operational plan within 30 days, follow through on modernization and hiring commitments, and restore in-house rail work as ordered," said Unifor National President Lana Payne.

When asked for a response to the arbitrator's latest ruling, a CN spokesperson said in an email the company has no comment at this time.