Employer violated collective agreements, says arbitrator
An arbitrator has ordered the Canadian National Railway Company (CN Rail) to reinvest in its Transcona Wheel Shop, compensate affected workers and return rail work to in-house production in Canada after finding the railway violated its collective agreement with Unifor.
The case arose from CN’s decision in May 2020, during the COVID-19 pandemic, to close the Wheel Shop, Traction Motor Shop and Air Brake Shop in Winnipeg, Manitoba, and contract out work normally performed by Unifor members, according to the union.
The arbitrator found CN violated the collective agreement by failing to properly notify Unifor, failing to consult the union before proceeding, and undermining the union’s ability to protect bargaining unit work. Those violations were deemed serious rather than technical, with the question of remedy left to a later award issued on March 3, 2026.
“This ruling is an important win for Unifor members and for the future of union rail work across the country,” said Unifor National President Lana Payne. “CN was found to have violated the collective agreement after work was pushed out of Transcona instead of being protected and maintained here in Canada. The ruling forces real reinvestment, restores core union work and sends a clear message that companies cannot erode Canadian industrial capacity without being held to account.”
Previously, a worker who was fired after just 19 hours of employment demanded over $490,000 in damages.
Remedies ordered for Transcona operations
In the supplementary award, the arbitrator directed CN to reinvest in and modernise the Transcona Wheel Shop, restore production to levels that meet or exceed those before the 2020 shutdown and hire at least 20 new bargaining unit employees as part of the restart.
While the decision does not require CN to reopen the Air Brake and Traction Motor Shops, it orders the company to bring 85% of heavy bad order locomotive work back in-house in Canada, with the majority of that work remaining in Transcona.
Unifor said it will monitor CN’s compliance with the ruling.
“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 modernisation and hiring commitments, and restore in-house rail work as ordered. We will be watching closely to make sure CN follows through on its obligations and that this decision leads to real investment and lasting union jobs in Canada,” Payne said.
HRD has not seen any comments from CN about this development.
Previously, a veteran Ontario meat plant worker accumulated 45 years of service, nine rounds of progressive discipline, a termination, and an arbitration win — and still never returned to work. On February 24, 2026, Ontario Labour Relations Board Vice-Chair Jordan Kirkness dismissed the application of Wayne Thomas Stokes, who alleged that his union, UFCW 175 & 633, had violated its duty of fair representation under section 74 of the Labour Relations Act, 1995, in relation to his employment with Olymel L.P. in Brampton.
