Canadian railroads shut down over labor dispute, threatening supply chains
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The two largest rail companies in Canada locked out nearly 10,000 unionized employees Thursday after failed labor talks, leading to a freight stoppage projected to cost the economy hundreds of millions a day and threatening significant disruptions to the North American supply chain.
Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC) both locked out workers represented by the Teamsters Canada Rail Conference (TCRC) after failing to reach an agreement with the union after nine months of negotiations.
Both sides blame each other for the breakdown.
A Canadian National Railway Co. train car at the MacMillan Yard in Toronto Aug. 20, 2024. (Cole Burston/Bloomberg via Getty Images / Getty Images)
Industry, agriculture, retail and trade groups warned ahead of time that any work stoppage in the rail system could lead to a substantial impact on trade between Canada and the U.S. and reverberate to other parts of the continent, depending on how long it lasts.
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Anderson Economic Group estimates the stoppage would cost the Canadian economy $303 million ($403 million CAN) if it lasts three days. If it extends to a week, the costs would top more than $1 billion.
The firm said the costs in its initial estimates would be borne nearly entirely by the Canadian economy, but the U.S. would have some losses while American ports and shippers would see some gains due to the disruptions.
A Canadian Pacific Kansas City Ltd. train car at the Canadian Pacific Railway Toronto Yard in Toronto Aug. 20, 2024. (Cole Burston/Bloomberg via Getty Images / Getty Images)
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