Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC) have locked out workers following unsuccessful negotiations with the Teamsters union, raising fears of significant economic repercussions. The Teamsters Canada Rail Conference (TCRC) accused the railways of prioritizing profit over safety and worker welfare, while the railroads claimed they had made reasonable offers regarding pay and working conditions.
Despite ongoing discussions, CPKC stated that a negotiated outcome with the TCRC seemed unattainable. The Canadian government has urged both parties to collaborate and reach an agreement without resorting to binding arbitration.
Francois Laporte, president of Teamsters Canada, expressed skepticism about government intervention, emphasizing the need for a resolution at the bargaining table. The lockout has already disrupted commuter rail services in major cities like Toronto, Vancouver, and Montreal, affecting tens of thousands of daily users.
Ontario Premier Doug Ford highlighted the immediate economic impact, noting that the rail shutdown is costing workers, transit users, and businesses across the country. The lockout commenced at 12:01 a.m. ET on Thursday, with business groups warning of rising costs and potential “devastating consequences.”
Moody’s ratings agency estimated that the stoppage could result in losses exceeding C$341 million ($251 million) per day, crippling shipments of essential commodities like grain, potash, coal, and petroleum products.