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Rail Transportation : Final Offer Arbitration
Final Offer Arbitration
The Canada Transportation Act (the Act) contains several provisions designed to facilitate the resolution of rate and service disputes between carriers and shippers or between carriers and railway companies engaged in passenger rail services, including commuter rail authorities designated by the government of a province. Final Offer Arbitration (FOA), described in Part IV of the Act, provides one means of resolving such impasses through the use of an arbitrator or a panel of three arbitrators. Arbitration must be completed within 60 days, or 30 days for disputes involving freight charges of less than $750,000, unless the parties agree to a different time frame. Under these confidential processes, parties may choose their arbitrators and can benefit from procedural flexibility. The arbitrator's decision is enforceable as a decision of the Agency.
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