A potential “economic disaster” has popped up north of the border. As of Thursday, Canada’s two largest railways, Canadian National (CN) and Canadian Pacific Kansas City Southern (CPKC), had shut down. Both usually cross goods between Canada and the United States.
Ottawa news host Bill Carroll uttered those words—“economic disaster”—when explaining the impact of the work stoppage this morning. These two rail lines are responsible for more than 9,300 workers and deliver goods across multiple sectors, including auto parts, agriculture, home building, and energy services.
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The Teamsters Canada Rail Conference has been without contracts at the two companies since the end of last year. Now, workers are locked out, after months of failed negotiations and threats to go on strike in the fall. The union had been seeking guarantees to address understaffing concerns; the companies offered pay increases but demanded various concessions on scheduling and availability.
The two major railways have never been shut down at the same time before. How long could this go on for? That remains to be seen, as the two sides are still reportedly far apart. In 2022, CPKC had a 60-hour work strike, according to CBC. CN last had a stoppage during a nine-day strike in 2019.
Paul Boucher, president of the Teamsters Canada Rail Conference, said the railroad companies’ “sole focus is boosting their bottom line, even if it means jeopardizing the entire economy.” According to CNN, the shutdown could indeed have major ramifications for US auto plants, farmers, and water treatment plants. Previously, the two companies had transported $1 billion in products each day.
Justin Trudeau, Canada’s prime minister, urged both parties to come to an agreement earlier this week to no avail. “It is in the best interest of both sides to continue doing the hard work at the table to find a negotiated resolution,” he said yesterday, according to Reuters, noting that “millions” of workers, farmers, and businesses are impacted by this back-and-forth.
Today, Trudeau added: “We are not taking this lightly, obviously because Canadians across the country are worried about it. We will have more to say shortly on what we’re doing to make sure that the right solution is found quickly for the economy,” according to CNN.
