Canadian railways locked out union workers Thursday after months of contract disputes.
Canada’s two main rail lines locked out rail workers early Thursday morning amid tense contract negotiations between the railways and the Canada Teamsters Rail Conference, which represents nearly 10,000 rail workers. Though Canadian Prime Minister Justin Trudeau has said his government will take action to resolve the dispute, the work stoppage could have a serious impact on the Canadian economy, as well as supply chains in both the US and Canada.
The rail companies, Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC), and the union have been negotiating for months. So far, the Canadian government has not forced either party’s hand to avert a work stoppage. But if the situation drags on, the federal government may step in and force the 9,300 workers to return to their jobs through legislation, as it has done in past labor disputes.
The two rail lines facilitate the transit of people and about $740 million worth of goods across the country’s vast interior each day. The stoppage is the result of the rail companies barring their workers from work, rather than a strike. The companies argued a lockout was necessary to ensure a safe and controlled drawdown of operations and that if they waited for operators to walk off the job, the companies wouldn’t have had time to secure hazardous materials or work out supply arrangements with key customers.
For now, the impact of the work stoppage is mainly on the Canadian economy, but because about 75 percent of Canadian exports — including coal and agricultural products — are sold to the US, there could be an impact on the US supply chain if the dispute isn’t resolved soon.What went wrong with Canadian railways and what it means for Canada’s supply chain
The two railway systems had contracts with the Teamsters union that expired in December 2023.
