Impending Rail Strike Threatens Canada's Economy

The Canadian government urges CN and CP Rail and the Teamsters union to reach labor agreements to avert a historic rail stoppage. A halt in freight rail services would impact food, fertilizers, and goods shipment, potentially costing the economy C$1 billion daily. Mediators report slow progress.

The Canadian government is scrambling to prevent a crippling rail transport stoppage, urging the nation's top railway firms and the Teamsters union to negotiate labor deals. Should talks fail, Canadian National Railway and Canadian Pacific Kansas City will halt all freight services, a first in history, starting early Thursday.

Heavily reliant on CN and CP for transporting food grains, fertilizers, and manufactured goods, Canada faces an estimated loss of C$1 billion ($733 million) daily if stoppages proceed, said the main business lobby group. Federal mediators are involved, but progress remains sluggish, with disputes over safety provisions at the core.

Labour Minister Steve MacKinnon emphasized the widespread impact on Canadians, urging both parties to reach an agreement. While he can impose binding arbitration, he prefers resolution at the negotiating table. Labor talks began early this year but have seen little progress, with CN Rail and CPKC ceasing hazardous shipments and phasing shutdowns. The looming strike has prompted logistical shifts, with some companies redirecting goods away from Canadian ports. Farmers and other industries brace for economic fallout as the potential strike threatens to paralyze ports and drive up prices, exacerbating Canada's affordability crisis.

(With inputs from agencies.)