CN Rail Layoff, Via Rail Layoffs: Temporary Layoffs Amid Blockades

CN Rail Layoffs, Via Rail Layoffs and Temporary Layoffs in Canada

Via Rail is temporarily laying off nearly 1,000 employees as blockades continue to prevent service on CN tracks in Eastern Canada.

The company is issuing notices to its employees regarding the layoffs, according to a release by the rail operator.

“This general interruption is an unprecedented situation in our history,” says VIA Rail President and Chief Executive Officer Cynthia Garneau. “We have done everything to mitigate the impact on our employees and our passengers.”

On Tuesday, news broke that CN Rail was placing 450 of its employees on a temporary layoff in response to the opposition to the British Columbia LNG pipeline project.

LEARN MORE
• CN Rail and severance packages
• Severance pay for Via Rail workers

Hereditary chiefs in the Wet’suwet’en First Nations and their supporters oppose the pipeline’s construction in their territory. Elected band councils have given their approval to the pipeline project.

Employment lawyer Jon Pinkus, partner at Samfiru Tumarkin LLP, spoke to Farah Nasser on Global News at Noon about the rail blockade’s impact on the economy, temporary layoffs, and employment rights.

What is a Temporary Layoff?

A temporary layoff in Canada occurs when an employer pauses a worker’s employment. Both the employer and employee expect that pause in work to be temporary. At the end of the pause, the employee should be returned to the position they held before the temporary layoff.

The status of the worker does not change during a temporary layoff, in that they are still an employee of the company.

Employers may resort to a temporary layoff during tough financial periods or unforeseen disputes, such as the current pipeline blockade.

What employees should know, and employers should be aware of, is that a temporary layoff is actually considered a termination of employment.

Temporary Layoffs: Rights for Non-unionized Via Rail and CN Rail Employees

A non-unionized Via Rail or CN Rail employee has options when facing a temporary layoff.

They can choose to accept the temporary layoff from their employer. The expectation would be that when the blockade lifts, they will return to their respective duties.

On the other hand, the employee reserves the right to treat the layoff as a termination of employment.

A company does not have a clear right to temporarily lay off its employees, save for a few exceptions. Those exceptions include the following:

• The existence of an employment contract that specifically address;
• The employee works in a business where temporary layoffs are considered common practice; or
• The employee agrees to the temporary layoff.

If the employee decides to view the layoff as a termination, they can pursue their full common law severance pay through a wrongful dismissal claim.

Unionized Employees and Temporary Layoffs

For temporary layoffs in a unionized workplace, employees should refer to their collective bargaining agreement (CBA). The CBA will contain rules that determine the rights of unionized employees during a layoff.