Final Offer Arbitration
Final offer arbitration (FOA) can be used in certain cases to resolve a dispute between commercial shippers, railways and transit authorities.
In a confidential process, each side develops and submits a final offer to resolve the dispute, and agrees in advance to be bound by the arbitrator's decision. The arbitrator will choose one of the submitted offers as the settlement.
Final offer arbitration can be used to settle rate and service disputes relating to:
- movements of goods by railway (movements of containers and trailers on flat cars are not eligible for FOA unless the containers arrive by water at a port in Canada served by only one railway company to move on by rail, or arrive by rail at such a port in Canada for further movement by water).
- movements of goods by water needed to maintain or develop permanent settlements for northern marine resupply purposes; or
- domestic movements of goods by air to which Part II of the Canada Transportation Act applies.
The process begins with the choice of an arbitrator, or a panel of three arbitrators. The Agency will provide all parties with a list of arbitrators from which they may freely choose.
When the settlement has been reached, it will remain confidential.
For more information about the final-offer arbitration process.