Canada’s two largest railways, Canadian National Railway and Canadian Pacific Railway, have ceased operations following unsuccessful negotiations with the Teamsters Canada Rail Conference, which represents 9,000 workers.
This lockout, effective Thursday morning, disrupts vital supply chains that facilitate approximately $740 million in trade daily.
The union’s refusal of the latest offers stems from unresolved issues regarding working conditions and employee fatigue.
The impact of the shutdown is expected to resonate across various sectors, including agriculture and manufacturing, as these railways play a crucial role in transporting goods across Canada and into the United States.
Both parties have expressed a willingness to continue discussions, but the timeline for a resolution remains uncertain.
The federal government could intervene to mandate a return to work, yet it is unclear if this option will be pursued.
As the situation unfolds, the economic consequences of this disruption are likely to be significant, highlighting the critical role of rail transport in the Canadian economy.