Canada’s two largest rail freighters locked out workers in a union dispute, blocking supply chains carrying $740m per day in trade.
Canada’s two largest rail freight providers have locked out 9,300 workers after talks with the Teamsters Canada Rail Conference union fell through on 22 August, blocking key supply chains for North American ports, carmakers, mining, agriculture and other businesses.
Unsuccessful talks
The union voted in favour of industrial action over employee working conditions after unsuccessful talks with Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC), which account for approximately 80% of Canada’s rail network.
C$1bn ($740m) per day
These North American supply lines carry C$1bn ($740m) per day in trade. Canada’s economy is set to lose C$341m ($251m) per day, according to ratings agency Moody’s estimate.
Calling on the Ottawa government
On 20 August, the Canadian Chamber of Commerce and the US Chamber of Commerce issued a joint statement calling on the Ottawa government to act to avert a “devastating” rail stoppage. It warned of the impact on “Canadian business and families, as well as the US economy”, where 75% of all Canadian exports end up.
Ahead of the strike
While shipping routes have already been used to divert certain Canadian goods to the US ahead of the strike, commodities including grain, fertiliser and timber cannot be moved onto trucks and need rail for transportation.
