WINNIPEG – Unifor has won a major arbitration ruling ordering CN to reinvest in the Transcona Wheel Shop, compensate affected workers and return rail work to in-house production in Canada after violating the collective agreement.
“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.”
The case stems from CN’s decision to close the Wheel Shop, Traction Motor Shop and Air Brake Shop, located in Winnipeg Manitoba, in May 2020 during the pandemic and then contract out work normally performed by union members. The arbitrator found CN violated the collective 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. He also found those violations were serious, not just technical, and left the question of remedy open until a later ruling. That ruling came on March 3, 2026.
“This decision matters to workers, families and the future of good jobs in Transcona,” said Gavin McGarrigle, Unifor Western Regional Director. “Transcona workers never stopped fighting for this work. The order to rebuild Wheel Shop production, add bargaining unit jobs and keep this work here at home is about protecting livelihoods, preserving skills and community pride.”
In the supplementary award issued on March 3, 2026, the arbitrator ordered CN to reinvest in and modernize the Transcona Wheel Shop, 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. While the award does not require CN to reopen the Air Brake and Traction Motor Shops, it does require CN to bring 85 per cent of heavy bad order locomotive work back in-house in Canada, with the majority of that work remaining in Transcona.
“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. 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,” continued Payne.