**Historic Shutdown of Canadian Railroads**
Canada’s major railroads, Canadian National (CN) and Canadian Pacific Kansas City (CPKC), announced a formal lockout of union rail employees starting at 12:01 a.m. Eastern time on Thursday, marking an unprecedented halt of the nation’s largest rail networks.
This lockout was initiated by CN following a lack of response from the union to its final contract proposal, which aimed to avert a labor disruption. The Teamsters Canada Rail Conference (TCRC) has labeled this situation a lockout, having previously set a strike deadline of their own if an agreement was not reached.
The contract dispute affects approximately 9,300 union employees, including train crews and dispatchers across CN and CPKC. The TCRC is advocating for higher wages, better benefits, and more predictable work schedules, seeking terms similar to recent agreements made by U.S. railroads. Negotiations usually occur every two years, but the one-year extension of the previous contract concluded at the end of 2023.
**Additional Developments:**
– Prime Minister Justin Trudeau urged both parties to negotiate, stating, “It is in the best interest of both sides to continue doing the hard work at the table to find a negotiated resolution,” as reported by CBC.
– James Vena, CEO of Union Pacific, the largest U.S. railroad, wrote to Labor Minister Steve MacKinnon urging intervention in the dispute, warning that a rail service disruption could have “devastating consequences” for both economies. Union Pacific moves 2,500 freight cars across the border daily and is coordinating with CN and CPKC to lessen customer impact.
– Canadian business groups called on the government early Wednesday for intervention to keep trains operating. Trudeau has resisted these requests, with the labor-aligned New Democratic Party opposing federal involvement. On Wednesday, MacKinnon met with CPKC and TCRC representatives in Calgary, urging them to reach an agreement, and he also met with CN in Montreal. Federal mediators are facilitating the contract negotiations.
– CN imposed an embargo on all freight effective immediately on Thursday, having previously restricted refrigerated cargo since August 15. Canada-U.S. intermodal embargoes began on August 16, affecting ports in New York, New Jersey, and Pennsylvania, as well as shipments from Indianapolis destined for Canada.
– Sources indicate that CN has not yet shared its plans with U.S. workers regarding how to manage the shutdown’s impact. During the work stoppage, only train movements within rail yards would occur, with no intercity trains active.
– Starting Tuesday, CPKC began embargoing all shipments originating from Canada and the U.S. destined for Canada, as well as all carload traffic headed for Canadian interchange. The railroad is directly communicating with customers concerning any additional embargoes or restrictions.
– A CPKC spokesperson reaffirmed the company’s commitment to achieving a negotiated resolution that serves the interests of both rail employees and their families.
– CSX has embargoed all cross-border shipments to and from CN and CPKC, although shipments with U.S. origins and destinations are not affected by this embargo. Restrictions remain in place for all hazardous materials and security-sensitive commodities originating or terminating on Canadian railroads.
– Norfolk Southern has indicated it is monitoring the situation. The embargoes enforced by CN and CPKC encompass all NS-originated traffic destined for Canada and all Canadian-originated traffic heading to NS destinations.
– CPKC President and CEO Keith Creel criticized the union leadership for allegedly misrepresenting the negotiation facts, labeling the claims that CPKC “unilaterally changed or canceled the terms” or that its proposals would “compromise safety” as “patently false.” Creel affirmed the railroad’s dedication to continuing negotiations.
– Canada’s largest container gateway is taking steps to manage vessel arrivals and maintain port efficiency. Incoming ships to the Port of Vancouver are instructed to adjust their arrival times by reducing their speed to alleviate congestion. A spokesperson warned, “We expect disruptions to the movement of containers, grain, potash, coal, and other cargo transported to and from port terminals by rail.”
– The Prince Rupert Port Authority in British Columbia has urged CN and TCRC to engage in good faith negotiations. They cautioned that the impending labor disruption endangers 3,300 direct full-time jobs associated with port operations in northern B.C., as well as the transportation of goods.
