Never mind that the word is actually spoken by a blue collar character in the song and that its usage was meant tocriticize people who would use such inflammatory terminology in reference to homosexuals. Apparently, the CBSC feels the majority of Canadians are incapable of making this distinction. So they're going by the old adage, "If in doubt, throw it out."
I have no doubt that equally worrisome to the powers that be is the song's chorus, which contains the words "Money for nothing" and "chicks for free." Clearly if Canadian citizens actually started to believe such things, there would be blood in the streets.
Viewed from another angle, it could be that the CBSC feels that Dire Straits' song unfairly characterizes blue collar workers as rampant homophobes. So perhaps in time this will be revealed as nothing more than a publicity stunt orchestrated by the Teamsters.
Next up on the CBSC's hit list: U2's Sometimes You Can't Make It On Your Own. Apparently, the CBSC has determined that sometimes you CAN make it on your own, and they don't want Canadians to get the wrong idea...