https://sputnikglobe.com/20240823/railways-come-to-a-halt-in-canada-due-to-union-negotiations-threatening-n-americas-economy-1119879857.html
Railways Come to a Halt in Canada Due to Union Negotiations, Threatening N. America’s Economy
Railways Come to a Halt in Canada Due to Union Negotiations, Threatening N. America’s Economy
Sputnik International
Significant economic harm to North American businesses and consumers may be under way after both of Canada’s major freight railroads came to a grinding halt.
2024-08-23T05:27+0000
2024-08-23T05:27+0000
2024-08-23T05:27+0000
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On Thursday, the Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC) locked out nearly 9,300 workers after failing to mint a deal with the Teamster Canada Rail Conference which represents about 10,000 engineers, conductors and dispatchers. Teamsters and CN had been negotiating for nine months while CPKC had been trying to negotiate for a year, the unions said.Significant economic harm to North American businesses and consumers may be under way after both of Canada’s major freight railroads came to a grinding halt.Rail traffic in Canada and all shipments moving across the US border have stopped, but CPKC and CN’s trains will reportedly continue to operate in the US and Mexico. However, according to the US Department of Transportation, billions of dollars of goods each month move between Canada and the US via railway. Canada also sends about 75% of all the goods it exports to the US and usually does so by railway, a British-based broadcaster explained.Finished products won’t be the only goods unable to cross the US-Canadian border. Manufacturing companies will not be able to get their raw materials without their regular rail deliveries, which could cause them to scale back production or even close shop altogether. A US news source also warned that ports and grain elevators may become clogged with shipments waiting to move. Water treatment plants across Canada may also experience difficulty in operating without new shipments of chlorine.According to the report, the railroads said their contract offers have included raises, and that their engineers make about $150,000 a year at CN while conductors make about $120,000 with CPKC claiming its wages are similar.Later on Thursday it was reported that Labor Minister Steve McKinnon reportedly sent both sides to final binding arbitration and said railways should resume operating within days.Canadian Prime Minister Justin Trudeau urged the railway and the Teamsters to reach a deal on Wednesday out of fear of an economic downturn. However, he was reportedly hesitant to call for an arbitration because he does not want to come down against a labor union. Business groups have urged the prime minister to take action.
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Railways Come to a Halt in Canada Due to Union Negotiations, Threatening N. America’s Economy
More than 30,000 commuters across Canada will also be struggling to find a way to get to work as trains won’t be able to operate over CPKC’s tracks amid the shutdown.
On
Thursday, the Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC) locked out nearly 9,300 workers after failing to mint a deal with the Teamster Canada Rail Conference which represents about 10,000 engineers, conductors and dispatchers. Teamsters and CN had been negotiating for nine months while CPKC had been trying to negotiate for a year, the unions said.
Significant economic harm to North American businesses and consumers may be under way after both of Canada’s major freight railroads came to a grinding halt.
Rail traffic in Canada and all shipments moving across the US border have stopped, but CPKC and CN’s trains will reportedly continue to operate in the US and Mexico. However, according to the US Department of Transportation, billions of dollars of goods each month move between Canada and the US via railway. Canada also sends about 75% of all the goods it exports to the US and usually does so by railway, a
British-based broadcaster explained.
"If rail traffic grinds to a halt, businesses and families across the country will feel the impact," said Jay Timmons, president and CEO of the National Association of Manufacturers. "Manufacturing workers, their communities and consumers of all sorts of products will be left reeling from supply chain disruptions."
Finished products won’t be the only goods unable to cross the US-Canadian border. Manufacturing companies will not be able to get their raw materials without their regular rail deliveries, which could cause them to scale back production or even close shop altogether. A
US news source also warned that ports and grain elevators may become clogged with shipments waiting to move. Water treatment plants across Canada may also experience difficulty in operating without new shipments of chlorine.
According to the report, the railroads said their contract offers have included raises, and that their engineers make about $150,000 a year at CN while conductors make about $120,000 with CPKC claiming its wages are similar.
Later on Thursday it was reported that Labor Minister Steve McKinnon reportedly sent both sides to final binding arbitration and said railways should resume operating within days.
"Workers, farmers, commuters and businesses rely on Canada’s railways everyday, and will continue to do so," McKinnon said. "It is the government’s duty and responsibility to ensure industrial peace in this critically vital sector."
Canadian Prime Minister Justin Trudeau urged the railway and the Teamsters to reach a deal on Wednesday out of fear of an economic downturn. However, he was reportedly hesitant to call for an arbitration because he does not want to come down against a labor union. Business groups have urged the prime minister to take action.
