Train service across the country came to a standstill as 9,300 workers at Canada’s two major railroads were locked out after they failed to agree on a new collective bargaining agreement by a 12:01 a.m. EDT deadline.
The closure is the first simultaneous work stoppage at Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC) and threatens to disrupt supply chains.
Together, the companies transport goods worth about a billion dollars every day, according to the Canadian Railway Association. Some of the transports were stopped preventively to prevent the freight from being left stranded.
Transportation authorities have announced that certain commuter lines running on Canadian Pacific tracks in Toronto, Montreal and Vancouver will be suspended.
Business associations have called on the government to intervene by introducing binding arbitration procedures for the duration of the proceedings and banning strikes and lockouts.
Prime Minister Justin Trudeau on Wednesday called on both sides to work out an agreement at the negotiating table.
The sectors affected include agriculture, mining, energy, retail, automotive and construction.
Affected commuters
Ports fear that containers will pile up at docks as cargo remains unmoved, creating congestion along the route and causing some carriers to divert their routes to U.S. terminals.
More than 32,000 rail commuters across the country also have to find new ways to get to the office.
Affected by the possible work stoppage are TransLink’s West Coast Express lines in the Vancouver area, Metrolinx’s Milton line and the Lakeshore line’s Hamilton GO station in the Greater Toronto Area, and Exo’s Candiac, Saint-Jerome and Vaudreuil/Hudson lines in the Montreal area.
Members of the Teamsters Canada Rail Conference gather outside the Canadian Pacific Canadian Pacific Kansas City headquarters in Calgary. Trains across the country have come to a standstill as 9,300 workers at Canada’s two major railroads have been locked out. (Acton Clarkin/CBC)
Negotiations fail
Rail traffic controllers at CPKC will continue working until 2:01 a.m. ET, the company said.
The Teamsters Canada Rail Conference (TCRC), which represents workers on both railways, has called for better wages, benefits and working conditions.
“The main obstacles to an agreement remain the demands of the companies, not the proposals of the unions,” the union said in a press release. “Neither CN nor CPKC have abandoned their push to relax protections on rest periods and working hours, which increases the risk of fatigue-related safety problems.”
Railroad cars at the CPKC Toronto Yard in Scarborough on Tuesday. (Evan Mitsui/CBC)
“CN also continues to call for a forced relocation plan that could require workers to move across the country, tearing families apart,” the union said in a statement.
In a statement, CPKC said the union was responsible for the failure of negotiations, citing “unrealistic demands” that would prevent the company from reliably serving its customers.
CN said its offer included better pay, among other benefits, but also accused the union of being unable to reach an agreement.
“Without an agreement or binding arbitration, CN had no choice but to implement a safe and orderly closure and proceed with the lockout,” the railroad said in a statement.
