By Robb M. Stewart


OTTAWA--Canada's labor-relations board has again opened the door to a possible work stoppage at the country's two big rail operators after determining a strike or lockout doesn't pose an immediate or serious danger to safety or public health.

The Canada Industrial Relations Board, in its decision Friday, ordered a 13-day cooling-off period between the rail companies--Canadian Pacific Kansas City and Canadian National Railway--and Teamsters Canada Rail Conference. Jean-Daniel Tardif, senior director of dispute-resolution services, said the CIRB wouldn't issue a further statement.

The decision puts the rail companies and the union back where they were in early May before the government averted a possible disruption of trade across the country when it asked the board to rule on whether the railroads must transport certain goods during a labor disruption.

The union and rail companies had argued there was no need for any essential services to be maintained in the event of a work stoppage.

The rail operators and the union agreed Monday to restart stalled negotiations this week alongside federal mediators, Labor Minister Steven MacKinnon said following the discussions. He said the government expected the talks to be productive and substantive, given the country has entrusted the companies and their workers with transporting close to 400 billion Canadian dollars (US$291 billion) in goods annually.

Thousands of rail workers represented by Teamsters Canada voted in May to strike.


Write to Robb M. Stewart at robb.stewart@wsj.com


(END) Dow Jones Newswires

08-09-24 1404ET