Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC) announced a lockout of their Canadian workers after failed labor talks, causing a shutdown of their rail networks in the country. The Teamsters union representing nearly 10,000 workers confirmed the decision, which could have a major impact on Canada’s economy and cross-border trade with the United States. Canada heavily relies on rail transport, and the stoppage is expected to disrupt shipments of grain, potash, coal, petroleum products, chemicals, and autos.
Industry groups, as well as U.S. railroad Union Pacific, have expressed concerns about the potential consequences of the stoppage on trade between the two countries. Rail transport plays a significant role in the bilateral trade relationship, accounting for 14% of total trade between Canada and the U.S. during the first half of the year. The stoppage follows months of unsuccessful negotiations, with the union seeking improved provisions for worker safety and the companies offering better wages and reduced workdays per month.
Both CN and CPKC stated that they had made final offers to the Teamsters in an attempt to avoid the lockout and urged the union to resume negotiations. Despite efforts to reach a negotiated outcome, neither side was able to come to an agreement. The impact of the rail stoppage on the Canadian economy and cross-border trade remains uncertain as both sides continue to be at an impasse.
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