Canada’s freight rail network came to a halt on Thursday as nearly 10,000 workers were locked out following the failure of labor negotiations between the country’s two major rail operators, Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC). The shutdown marks the first time that both companies, which typically negotiate labor deals in alternate years, have faced simultaneous work stoppages.
The lockout was initiated after the two rail giants and the Teamsters Canada Rail Conference (TCRC), the union representing the workers, failed to reach agreements despite months of negotiations. The union had set a midnight (0500 GMT) deadline for a deal, but talks remained at an impasse.
“Despite months of good faith negotiations, the parties remain far apart, and both CN and CPKC have begun their lockout,” the TCRC said in a statement. The union expressed frustration over the companies’ unwillingness to address critical issues, particularly those related to worker safety and working conditions.
The rail shutdown has significant implications for Canada’s economy. With tracks spanning from the Atlantic to the Pacific and extending into the United States, CN and CPKC are responsible for moving an estimated Can$1 billion (US$730 million) worth of goods daily. These goods include essential commodities such as grains, potash, cars, petroleum products, and timber.
The disruption has already begun to ripple through the economy, with business groups and farmers warning of costly impacts. U.S. rail companies and overseas shippers had preemptively stopped accepting some goods destined for Canada in anticipation of the shutdown, further exacerbating supply chain issues.
The labor dispute centers on several key issues. Workers have raised concerns about long hours and fatigue, which they say have led to unsafe working conditions. CN, in particular, sought to address staff shortages in parts of Canada by temporarily relocating workers, a proposal that the union rejected. Meanwhile, the dispute with CPKC focuses on safety issues related to rest periods for train crews, with the union arguing that current practices compromise both worker safety and the well-being of their families.
Teamsters Canada Rail Conference President Paul Boucher criticized the rail companies for their stance, stating that CN and CPKC “have shown themselves willing to compromise rail safety and tear families apart to earn an extra buck.” Despite the lockout, the union indicated that it remains at the bargaining table, hoping to reach a resolution.
As the standoff continues, the impact of the shutdown on Canada’s economy and the livelihoods of thousands of workers remains to be seen.