Canada's two biggest railways shut down after labour talks fail
Canada’s two biggest railways, accounting for almost 80 per cent of the national network, shut down early Thursday after talks with a union failed, immediately blocking arteries of North American supply chains that carry about $1 billion 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 Thursday. The two companies were unable to reach a deal with the Teamsters Canada Rail Conference after the union voted in favour of a strike over scheduling and ways to mitigate worker fatigue.
In a statement, a spokesperson for Canadian National said it has consistently made offers to improve wages and rest time, including a final offer to avoid a lockout. “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.
Union president Paul Boucher said the main obstacles to reaching an agreement remain the companies’ demands, not union proposals. “Their sole focus is boosting their bottom line, even if it means jeopardizing the entire economy,” he said in a statement.
A Canadian Pacific spokesperson said the union continues to make unrealistic demands that would fundamentally impair the railway’s ability to serve its customers. “We fully understand and appreciate what this work stoppage means for Canadians and our economy,” the spokesperson said in a statement.
The stoppage may cost Canada as much as $341 million per day, according to a Wednesday estimate from ratings agency Moody’s Corp.
As the deadline approached, business groups and rail-dependent industries from automakers to agriculture had issued dire warnings about the economic damage,
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