A rail strike in Canada is expected to cost billions of dollars
Canada's two largest rail companies are scheduled to shut down on Thursday in a labor dispute that could halt rail freight and cost billions of dollars.
On August 18, local time, Canadian National Railway officially notified the Canadian Teamsters Union that it plans to impose a lockout ban on union workers starting this Thursday. In a statement, the company said that if the labor conflict is not clearly resolved in the short term, it will shut down the operating network in phases, eventually leading to a complete shutdown.
At the same time, the Canadian Pacific Kansas City Railway company informed the Teamsters union that it plans to close member lanes on Thursday. That means much of Canada's rail freight service could grind to a halt by Thursday if the two sides fail to reach a last-minute labor deal.
The simultaneous shutdown of the two railroads is expected to cost the economy billions of dollars.
Meanwhile, Canada's other rail giant, Canadian Pacific Kansas City Railway, has informed the Teamsters union that it will close membership lanes early on Thursday. That means most rail freight in Canada faces a standstill until Thursday unless a last-minute labor deal is reached.
Both sides have accused each other of negotiating in bad faith, with the union arguing that the railroad's demands for concessions could endanger worker safety, a charge denied by both companies.
Faced with the impasse, the federal Liberal government has rejected pleas from business groups to intervene, insisting that the company and the union resolve their differences through negotiations. In addition, the Teamsters Union also confirmed that it has received another 72-hour cease service notice for Canadian Pacific Kansas City Railway, also effective at 00:01 a.m. Et on Thursday, August 22.
Two of Canada's largest rail companies, Canadian National Railway and Canadian Pacific Kansas City Railway, are about to shut down simultaneously, an unprecedented event that is expected to result in billions of dollars in economic losses. Why such a major strike? The reason can be traced to the impasse in contract negotiations.
Normally, contract negotiations between the Teamsters and rail companies are annual, but in 2022, the federal government introduced new fatigue rules, and CN requested a one-year extension of the old contract rather than open new negotiations. This decision extended the labor agreement until the end of 2023, and the negotiation process continues to this day. If the talks fail, it would lead to the first complete shutdown of Canada's freight rail system. The Teamsters union represents about 10,000 members, including locomotive engineers, conductors, railroad workers and traffic controllers.
The Canadian Pacific Kansas City Railway Company was formed by the merger of the Canadian Pacific Railway and the Kansas City Southern Railway in 2023, and its network covers the United States and Mexico. The company announced that if there is no progress in negotiations with the Teamsters union, it will suspend cross-border shipments of new cargoes from August 20. The route carries key supplies such as grain, cars, coal and potash.
The union said Canadian Pacific Kansas City Railway was trying to scrap key agreement provisions on fatigue management, increasing the risk of accidents. The company countered that its proposal fully complied with new regulatory requirements and did not compromise safety.
On the other hand, the forced relocation clause proposed by Canadian National Railway, which requires workers to move to fill gaps in the workforce, is also a point of contention. The company said it had made a number of proposals on pay, rest and workforce allocation, and that it strictly complied with government regulations.
At present, the two sides have deep differences on a number of core issues of the contract renewal, and they have refused to compromise, leading to the increasingly urgent strike crisis.
On August 18, local time, Canadian National Railway officially notified the Canadian Teamsters Union that it plans to impose a lockout ban on union workers starting this Thursday. In a statement, the company said that if the labor conflict is not clearly resolved in the short term, it will shut down the operating network in phases, eventually leading to a complete shutdown.
At the same time, the Canadian Pacific Kansas City Railway company informed the Teamsters union that it plans to close member lanes on Thursday. That means much of Canada's rail freight service could grind to a halt by Thursday if the two sides fail to reach a last-minute labor deal.
The simultaneous shutdown of the two railroads is expected to cost the economy billions of dollars.
Meanwhile, Canada's other rail giant, Canadian Pacific Kansas City Railway, has informed the Teamsters union that it will close membership lanes early on Thursday. That means most rail freight in Canada faces a standstill until Thursday unless a last-minute labor deal is reached.
Both sides have accused each other of negotiating in bad faith, with the union arguing that the railroad's demands for concessions could endanger worker safety, a charge denied by both companies.
Faced with the impasse, the federal Liberal government has rejected pleas from business groups to intervene, insisting that the company and the union resolve their differences through negotiations. In addition, the Teamsters Union also confirmed that it has received another 72-hour cease service notice for Canadian Pacific Kansas City Railway, also effective at 00:01 a.m. Et on Thursday, August 22.
Two of Canada's largest rail companies, Canadian National Railway and Canadian Pacific Kansas City Railway, are about to shut down simultaneously, an unprecedented event that is expected to result in billions of dollars in economic losses. Why such a major strike? The reason can be traced to the impasse in contract negotiations.
Normally, contract negotiations between the Teamsters and rail companies are annual, but in 2022, the federal government introduced new fatigue rules, and CN requested a one-year extension of the old contract rather than open new negotiations. This decision extended the labor agreement until the end of 2023, and the negotiation process continues to this day. If the talks fail, it would lead to the first complete shutdown of Canada's freight rail system. The Teamsters union represents about 10,000 members, including locomotive engineers, conductors, railroad workers and traffic controllers.
The Canadian Pacific Kansas City Railway Company was formed by the merger of the Canadian Pacific Railway and the Kansas City Southern Railway in 2023, and its network covers the United States and Mexico. The company announced that if there is no progress in negotiations with the Teamsters union, it will suspend cross-border shipments of new cargoes from August 20. The route carries key supplies such as grain, cars, coal and potash.
The union said Canadian Pacific Kansas City Railway was trying to scrap key agreement provisions on fatigue management, increasing the risk of accidents. The company countered that its proposal fully complied with new regulatory requirements and did not compromise safety.
On the other hand, the forced relocation clause proposed by Canadian National Railway, which requires workers to move to fill gaps in the workforce, is also a point of contention. The company said it had made a number of proposals on pay, rest and workforce allocation, and that it strictly complied with government regulations.
At present, the two sides have deep differences on a number of core issues of the contract renewal, and they have refused to compromise, leading to the increasingly urgent strike crisis.
