Canada’s major freight railroads, Canadian National and CPKC, have come to a standstill due to a contract dispute with the Teamsters Canada Rail Conference, affecting businesses and consumers in Canada and the U.S. Rail traffic has stopped, impacting the movement of billions of dollars in goods between the two countries.
The halt in rail service has left over 30,000 commuters in Vancouver, Toronto, and Montreal scrambling to find alternative transportation. The government has declined to intervene, with Prime Minister Justin Trudeau urging both sides to work towards a resolution to avoid economic damage.
Both railroads have stated they would end the lockout if the union agreed to binding arbitration. Negotiations have been ongoing for nine months for CN and a year for CPKC. Industries across all sectors rely on railways for transportation, and without regular service, they may have to reduce production or close down entirely.
In the U.S., CSX has reached a deal with some of its unions, providing raises and better benefits, breaking away from the industry’s practice of negotiating jointly with unions. Trudeau has expressed concern about the economic impact of a full rail shutdown, urging urgency at the negotiating table.
The negotiations are centered around scheduling issues and concerns about preventing fatigue and ensuring adequate rest for train crews. Rail workers earn average salaries of $150,000 for engineers and $120,000 for conductors in Canada. Industries such as manufacturing, agriculture, ports, and grain elevators would be severely impacted by a prolonged rail shutdown.
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