Canada's two major freight railroads may stop Thursday if contract dispute isn't resolved
Canada’s two major freight railroads could come to a halt Thursday if they can’t resolve a contract dispute
TORONTO — Canada's two major freight railroads could halt their trains Thursday if they can't agree to renewed contracts with the union representing their engineers, conductors and dispatchers. Canada's government is watching closely and may intervene to prevent widespread damage to the economy.
Both Canadian National and CPKC have been gradually shutting down since last week ahead of the contract deadline of 12:01 a.m. Eastern Thursday and all traffic will stop before then if this isn't resolved. Shipments of hazardous chemicals and perishable goods were the first to stop, so they wouldn't be stranded somewhere on the tracks.
As the Canadian contract talks were coming down to the wire, CSX broke with the U.S. freight rail industry’s longstanding practice of negotiating jointly for years with the unions. CSX reached a deal with three of its 13 unions ahead of the start of national bargaining later this year.
The new five-year contract with the Transportation Communications Union, the Brotherhood of Railway Carmen and the Transport Workers Union will provide 17.5% raises, better benefits and vacation time for about 1,600 clerks and the carmen who inspect railcars. TCU President Artie Maratea said he’s proud that his union reached a deal “without years of unnecessary delay and stall tactics.”
Canadian Prime Minister Justin Trudeau has been reluctant to force both sides into arbitration because he doesn't want to offend the Teamsters Canada Rail Conference and other unions, but he urged both sides to reach a deal Wednesday because of the tremendous economic damage that would follow a full shutdown.
“It is in the best
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