Canada’s two biggest railways, accounting for almost 80 percent of the national network, shut down early yesterday after talks with a union failed, immediately blocking arteries of North American supply chains that carry about C$1 billion (US$736.4 million) per day in trade.
More than 9,000 employees at Canadian National Railway Co and Canadian Pacific Kansas City Ltd were locked out after a deadline elapsed early yesterday. The two companies were unable to reach a deal with the Teamsters Canada Rail Conference after the union voted in favor of a strike over scheduling and ways to mitigate worker fatigue.
Canadian National has consistently made offers to improve wages and rest time, including a final offer to avoid a lockout, a spokesperson said in a statement.
Photo: AFP
“The Teamsters have not shown any urgency or desire to reach a deal that is good for employees, the company and the economy,” the spokesperson said.
The main obstacles to reaching an agreement remain the companies’ demands, not union proposals, union president Paul Boucher said.
“Their sole focus is boosting their bottom line, even if it means jeopardizing the entire economy,” Boucher said in a statement.
The union continues to make unrealistic demands that would fundamentally impair the railway’s ability to serve its customers, a Canadian Pacific spokesperson said.
“We fully understand and appreciate what this work stoppage means for Canadians and our economy,” the spokesperson said in a statement.
The stoppage might cost Canada as much as C$341 million per day, a Wednesday estimate from ratings agency Moody’s Corp showed.
As the deadline approached, business groups and rail-dependent industries, from automakers to agriculture, had issued dire warnings about the economic damage, which could mean plants cutting shifts or shuttering, as well as longer-term injury to Canada’s trading relationships and reputation for reliability, following other recent disruptions to its transportation networks.
Shippers had already diverted some cargo to the US ahead of the strike. Certain crucial major Canadian commodities such as fertilizer, grain and lumber need rail to move and cannot be transferred onto trucks at scale. The stoppages would also cause upset for Canadian city commuters.
It is the first time in decades that workers at both companies walked out simultaneously, and the lead-up prompted urgent questions for the federal government.
Canadian Minister of Labor Steven MacKinnon denied Canadian National’s request to impose binding arbitration on Thursday last week and encouraged parties to reach a deal at the bargaining table.
The minister also met with the parties and federal mediators on Tuesday and Wednesday.
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