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Snapshot 9:Thu, Aug 22, 2024 4:47:38 PM GMT last edited by MalcolmStanding

Canada Braces for Massive Railroad Freight Stoppage

Canada Braces for Massive Railroad Freight Stoppage

Above: Shipping Cargo Containers, Vancouver, BC, Canada. Image copyright: Hisham Ibrahim/Contributor/Moment Mobile via Getty Images

The Facts

  • Canadian freight operators Canadian National Railway (CN Rail) and Canadian Pacific Kansas City (CPKC) are set to lock workers out Thursday over a labor dispute with the The Teamsters Canada Rail Conference.Canadian freight operators Canadian National Railway (CN Rail) and Canadian Pacific Kansas City (CPKC) locked workers out early Thursday over a labor dispute with the The Teamsters Canada Rail Conference.

  • The two firms Friday issued a warning to around 9.3K engineers, conductors, and yard workers on the lockout. The two companies have halted refrigerated, perishable, and security-sensitive shipments in anticipation of a potential strike.The two firms issued a warning last Friday to around 9.3K engineers, conductors, and yard workers on the lockout, while the union issued a strike notice on Sunday. The two companies had halted refrigerated, perishable, and security-sensitive shipments in anticipation of a potential strike.

  • On its part, the Teamsters Canada Rail Conference served a 72-hour strike notice to the two firms unless a deal is reached by the Thursday deadline.Bargaining resumed Thursday morning as workers also made their way to picket lines across the country. Both sides have accused the other of bad-faith negotiations, as Prime Minister Justin Trudeau urged negotiators on Wednesday to reach a deal.


The Spin


The Canadian railroad service faces an unprecedented crisis as the CN Rail and CPKC workers' strike looms. This situation arose from a unique alignment of contract expirations for both companies and CN Rail's request for an extension due to the new fatigue rules. The Teamsters union seeks better safety norms, work rules, and relocation policies. The government's role remains uncertain, leaving the nation in a potential gridlock.


Disruptions in Canadian railroads could severely impact trade across North America. Key US rail and shipping hubs connected to the Canadian network, like Chicago and New Orleans, would face delays, leading to billions in economic damage and widespread supply chain issues. The US must brace for possible shortages in grains, coal, and timber supplies and Canada must address this labor dispute immediately.


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