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Potential Rail Strike Could Have Major Impact on Alberta Economy and Supply Chains

Alberta’s economy faces a significant threat as nearly 10,000 rail workers, including conductors, engineers, and yard workers, prepare for a potential strike by Thursday. The Teamsters union has issued a 72-hour strike notice to Canadian National Railway (CN) and Canadian Pacific Kansas City, signaling a possible halt in operations that could have far-reaching consequences.

CN has responded with a lockout notice, warning that unless an agreement or binding arbitration is reached, a shutdown of its network will proceed. The stakes are high, with Canada’s railways transporting $380 billion in goods annually. A work stoppage could cost the economy over a billion dollars per day, according to Canadian Manufacturers & Exporters (CME).

Ryan Greer, CME’s vice president, described the potential strike as “catastrophic” for Alberta and the broader Canadian economy. Alberta, heavily reliant on rail for transporting goods such as oil, agricultural products, and manufactured goods, could see significant disruptions. The average daily financial impact on manufacturers is estimated at $275,000 per day of the stoppage.

In addition to economic concerns, safety, scheduling, and fatigue management remain key issues for the rail workers. Despite weekend negotiations, CN and the union remain far apart, with little progress made.

If the strike proceeds, Albertans could face delays and shortages in essential goods, impacting both consumers and businesses across the province.

A CN Rail freight train