Canada Faces Potential Rail Shutdown as Government Urges Negotiation

The Canadian government is urging the country's two main railway companies, Canadian National Railway and Canadian Pacific Kansas City, and the Teamsters union to reach labor agreements to prevent an unprecedented simultaneous shutdown. This stoppage could halt essential shipments, cause significant economic losses, and impact Canada's reliability as a major supplier.

On Monday, the Canadian government urged the nation's two major rail companies and the Teamsters union to intensify their efforts to reach labor agreements, as a simultaneous shutdown looms. Both Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC) could cease operations early Thursday, for the first time in history, if no agreement is reached.

As Canada's transportation network plays a critical role in shipping grains, fertilizers, and other commodities, the main business lobby group estimates daily economic losses could hit C$1 billion ($733 million). Despite federal mediators' involvement, there has been minimal progress in negotiations, with the union accusing the companies of attempting to dilute safety standards—a charge the companies deny.

Federal Labour Minister Steve MacKinnon stressed the gravity of the situation on social media, urging all parties to negotiate diligently to prevent a nationwide rail stoppage. While MacKinnon can enforce binding arbitration, he prefers resolving disputes at the bargaining table. As the deadlock persists, CN Rail and CPKC have begun to refuse hazardous shipments, and companies like Maersk are halting Canada-bound shipments.

(With inputs from agencies.)