Canada: Railroad Freight Stoppage Begins After Lockout Notice Issued
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 Teamsters Canada Rail Conference....
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Facts
- 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 Teamsters Canada Rail Conference.[1][2]
- 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.[3][4]
- Bargaining resumed Thursday morning as workers headed 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.[5]
- While the Teamsters's dispute with CN Rail reportedly centers around the company's forced relocation policy, the conflict with CPKC is tied to workers' safety.[6]
- Together, the CPKC and CN Rail reportedly handle about 40K carloads of freight worth $1B a day, including cars, auto parts, chemicals, and agricultural products. Over 32K rail commuters in major metropolitan areas will also be affected, as CPKC-owned rails will not have any Teamsters dispatchers.[7][5]
- The impact of such a workers' strike in Canada could be felt as far as the US and Mexico. Last week, the federal government rejected a request from CN to force the union into binding arbitration.[8][1]
Sources: [1]The Globe and Mail, [2]Guardian, [3]UPI, [4]Automotive Logistics, [5]Montrealgazette, [6]Reuters, [7]ABC News and [8]Supply Chain Dive.
Narratives
- Narrative A, as provided by Voice of America. The Canadian railroad service faces an unprecedented crisis as the CN Rail and CPKC workers' strike begins. 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 potentially prolonged gridlock.
- Narrative B, as provided by CNN. Disruptions in Canadian railroads will 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.
