Canada-US Rail Dispute: Economic Impact Looms

A major contract dispute has led Canada’s significant freight railroads, CN and CPKC, to halt operations, potentially causing significant economic harm. The dispute involves scheduling and rest rules for rail workers, impacting billions of dollars’ worth of goods moving between Canada and the US. Talks at the government and union level continue.

Canada's freight railroads CN and CPKC halted operations Thursday following a contract dispute with their workers, threatening significant economic harm to businesses and consumers across Canada and the US. Government officials met urgently as the Teamsters Canada Rail Conference continues negotiations on scheduling and rest rules.

This shutdown has stopped all rail traffic in Canada and cross-border shipments, risking disruptions worth billions of dollars each month in goods. The railroads proposed shifting to an hourly system from a mileage-based pay for workers to provide more predictable time off, amidst concerns around fatigue and fair scheduling.

Business groups pressured the Canadian government for intervention. Prime Minister Justin Trudeau declined binding arbitration, urging resolution at the bargaining table. Business leaders warned of substantial economic impacts, while Labor Minister Steven MacKinnon emphasized the need for a quick agreement.

(With inputs from agencies.)