Canada’s two major railways locked out their workers Thursday, bringing rail transit to a halt across the nation and likely causing supply chain problems in the U.S. as well.
About 9,500 Canadian railway workers represented by a Teamsters union were told to stay home as service stopped. Their contracts with two major Canadian railways, Canadian National and CPKC, expired at midnight.
“If rail traffic grinds to a halt, businesses and families across the country will feel the impact,” said Jay Timmons, president and CEO of the U.S. National Association of Manufacturers. “Manufacturing workers, their communities and consumers of all sorts of products will be left reeling from supply chain disruptions.”
Though Canadians will feel the brunt of the lockout, both CN and CPKC operate and coordinate cross-border shipments with their American counterparts.
Negotiations have been hung up on wages and quality of life issues, according to the union. Conductors, engineers and dispatchers were all fighting for more consistent schedules and more off days, similar to the concerns of American railroad workers that almost led to a strike two years ago.
In that case, Congress and President Biden forced the workers to accept a deal, angering the railroad unions and other organized labor groups throughout the country. Left-leaning Canadian Prime Minister Justin Trudeau has the power to force the groups into binding arbitration, but he has so far held off.
“It is in the best interest of both sides to continue doing the hard work at the table,” Trudeau said Wednesday. Business leaders across the country have been pressuring Trudeau to act, as binding arbitration undercuts the unions’ leverage by preventing their ability to withhold labor.
Labor Minister Steven MacKinnon met with both sides in the CN talks on Tuesday and the CPKC talks on Wednesday, according to Trudeau.
Both sides accused the other of making ridiculous offers and dragging out negotiations. CPKC has been bargaining with the Teamsters for a year, while CN negotiations began nine months ago.
Along with the massive freight rail issues, commuter rail was disrupted in Toronto, Montreal and Vancouver, as the trains use CPKC lines. The lockout forced an estimated 30,000 people who use the lines daily to find new ways to get to work.
With News Wire Services
