Averted Canadian rail strike leaves political tensions

Significance

Stalled talks between the Teamsters union and management at the country’s two main rail freight companies will now go to binding arbitration, but the minority Liberal government’s intervention is creating further tensions in its loose partnership with the New Democratic Party (NDP) on the political left.

Impacts

• Although the Teamsters will challenge the government order in court, there is little doubt about Ottawa's ability to order a return to work.
• The NDP leadership will once again come under grassroots pressure over its support for Trudeau but is unlikely to shift position.
• A similar government move is likely if the Air Canada strike proceeds after a three-week ‘cooling off’ period that began this week.
• The prospect of a US East and Gulf coast port strike in October, while out of Ottawa’s control, poses a threat to Canada’s economy.