Canada’s two largest rail operators, CN and CPKC, issue lockout notices to nearly 10,000 Teamsters union workers, risking a nationwide freight rail shutdown and severe economic impact.
Canada, Bollywood Fever: Canada’s freight rail network is on the brink of a major shutdown this week, with the country’s two largest railroad operators, Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC), issuing lockout notices to nearly 10,000 workers represented by the Teamsters union.
If last-minute deals are not reached, both companies plan to lock out workers starting early Thursday, potentially crippling the nation’s rail-dependent industries.
This unprecedented situation marks the first time that Canada faces simultaneous labor stoppages at both rail firms, which typically negotiate labor agreements in alternate years.
The potential work stoppages threaten to halt the shipment of critical exports such as food grains, potash, coal, and timber, and disrupt the transportation of petroleum products, chemicals, and automobiles.
The economic toll could reach billions of dollars, with ripple effects extending across North America.
CN warned in a statement that “Unless there is an immediate and definite resolution to the labour conflict, CN will have no choice but to continue the phased and progressive shutdown of its network which would culminate in a lockout.”
The company noted that despite weekend negotiations, “no meaningful progress has occurred, and the parties remain very far apart.”
The Teamsters union, representing yard workers, rail traffic controllers, locomotive engineers, and conductors, is at odds with CN over a forced relocation provision that would require workers to move across Canada for extended periods to fill labor shortages.
CN has made four offers this year addressing wages, rest, and labor availability, asserting that it is in full compliance with government-mandated duty and rest period rules.
Meanwhile, the dispute with CPKC centers on safety concerns. The union argues that CPKC seeks to “gut the collective agreement of all safety-critical fatigue provisions,” potentially forcing crews to work longer hours and increasing the risk of accidents.
CPKC maintains that its offer preserves current work rules, complies with new regulatory requirements for rest, and does not compromise safety.
Earlier on Sunday, the Teamsters issued a 72-hour strike notice to CPKC, in response to the company’s lockout notice, and advised members to treat CN’s lockout notice “as if we were on strike.”
Both CN and CPKC have indicated that their networks outside of Canada will continue to operate, but the stoppages could have far-reaching impacts.
The Canadian rail networks connect with key U.S. rail and shipping hubs, including Chicago, New Orleans, Minneapolis, and Memphis, and CPKC’s network extends to ports on Mexico’s east and west coasts.
Despite growing concerns from business groups, the federal Liberal government has so far refrained from intervening, stating that it prefers the companies and unions to resolve their differences through negotiation.
As the Thursday deadline approaches, all eyes are on the negotiations to see if a resolution can be reached before the potential shutdown takes effect.
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