By Paul Vieira
OTTAWA--Canada's Labor Minister Seamus O'Regan is leaving his post, according to two people familiar with the matter, at a time when the country's logistics network could face upheaval from a potential strike at the two main railroads.
O'Regan intends to remain in the country's legislature as a Liberal Party lawmaker, but doesn't intend to run for re-election, one person said. CTV News and Canadian Broadcasting Corp. earlier reported on O'Regan's departure.
Canadian Prime Minister Justin Trudeau is likely to name a replacement in the coming days but doesn't expect to make other changes to the cabinet, according to a second person familiar with the matter.
The new labor minister could face a tricky test from the get-go, with the possibility of a strike at Canadian National Railway and Canadian Pacific Kansas City.
In May, O'Regan temporarily averted a strike by 9,000 unionized employees at Canadian National and CPKC when he asked the country's labor-relations board to rule on whether the railroads must transport certain goods during a labor disruption. The workers represented by Teamsters Canada were set to strike simultaneously at the railroads on May 22, but the strike was put on hold as the parties await the labor-board ruling.
Both CN Railway and CPKC have said the ruling could emerge this month. The Canada Industrial Relations Board has not provided a timeline on when it would reach a decision.
In a note to customers last month, Canadian National said that no work stoppage could occur until 72 hours after the board's decision, per the country's labor laws.
Business groups have warned a simultaneous strike involving both major railroads would trigger major disruptions in the supply-chain network.
Write to Paul Vieira at paul.vieira@wsj.com
(END) Dow Jones Newswires
07-18-24 1253ET
