Trudeau Urges Rail Companies and Union to Avoid Economic Catastrophe

Canadian Prime Minister Justin Trudeau called on two major rail companies and the Teamsters union to settle their disputes to avoid significant economic damage. Despite urging for resolution, CN Railway has reported a breakdown in talks and requested government intervention. A shutdown could severely impact the nation's economy.

Canadian Prime Minister Justin Trudeau appealed to the country's two main railway companies and the Teamsters union on Wednesday to resolve their disputes and prevent a potential strike that could have devastating economic consequences. Despite this, Canadian National Railway (CN) later announced a breakdown in negotiations and called for government intervention.

CN Rail and Canadian Pacific Kansas City (CPKC) warned they would lock out workers early Thursday unless new agreements are reached. Discussions between the companies and the union have stalled, with each party blaming the other for acting in bad faith.

Trudeau emphasized the importance of a negotiated resolution, noting the widespread impact on Canadians, businesses, and farmers. Federal Labor Minister Steven MacKinnon has also been involved, meeting with both companies' executives this week, while Finance Minister Chrystia Freeland highlighted the severe economic repercussions of a potential rail shutdown.

Moody's estimates that halting 75% of Canada's freight rail traffic would cost the economy C$341.5 million ($251 million) daily, equating to more than 4% of the nation's GDP. Business associations have urged the federal government to intervene. The Teamsters accuse CN and CPKC of attempting to weaken safety standards, a claim the companies deny.

(With inputs from agencies.)