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© Reuters. FILE PHOTO: Canadian Pacific Railroad Yard Pictured in Port Coquitlam, British Columbia, Feb. 15, 2015. REUTERS/Ben Nelms


(Reuters) -Canadian Pacific Railway Ltd will restart on Tuesday after agreeing to arbitrate with its conductors and engineers, allaying concerns over further disruptions to the country’s industries dealing with supply chain disruptions .

CP said the agreement with Teamsters Canada Rail Conference will end the interruption that began early Sunday, adding that it would begin immediately resuming normal rail operations across the country.

The company shut down and locked out its employees after a dispute over pensions, wages and benefits, sparking calls for speedy negotiations over fears it could exacerbate a shortage of goods as a result of Russia’s invasion of Ukraine.

Canada is the world’s largest producer of potassium, an important raw material needed for the production of nitrogen fertilizers, followed by Russia and Belarus.

“While arbitration is not the preferred method, we have been able to negotiate terms that are in the best interests of our members,” union spokesman Dave Fulton said in a statement.

Normal operations at CP will continue during the arbitration period, Canadian Labor Secretary Seamus O’Regan Jr, who brokered the talks, said in a statement.

The deal comes as problems in the global supply chain have hit the rail sector and the industries that depend on it to transport everything from cars to coal.

The world’s largest fertilizer producer, Canada’s Nutrien (NYSE:) Ltd, said last week it may have to cut potassium production at its mines in the province of Saskatchewan if CP shut down that lasted longer than a few days.

Canada, the second largest country after Russia by area, relies heavily on rail to transport raw materials and manufactured goods to ports. CP’s network runs through much of southern Canada and extends south to Kansas City in the United States.

The last major disruption to rail labor in the country was an eight-day strike by Canadian National Railway (TSX:) Co in 2019.

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This post Canada’s CP Rail Restarts Operations After Arbitration Agreement By Reuters

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