The tense standoff between Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC) has reached a critical juncture as bargaining is set to resume Thursday morning after breaking off just before midnight. This marks the first-ever simultaneous work stoppage by Canada’s two largest railways, with significant implications for the country’s supply chains.
Negotiations, which had become increasingly acrimonious, collapsed late Wednesday. The disruption has grounded freight and passenger services, intensifying the economic impact on industries still recovering from pandemic-related challenges and last year’s port strike.
The Teamsters Canada Rail Conference has mobilized workers, with picket lines visible from Halifax to Vancouver, and demonstrations outside CN’s Montreal headquarters. The work stoppage has already triggered a ripple effect: GO Transit in Ontario reported increased congestion and service suspensions on key routes, while Vancouver’s TransLink and Montreal’s Exo also announced service interruptions.
Industry and government pressure is mounting to resolve the deadlock. Ontario Premier Doug Ford emphasized the urgency of addressing the situation, while Canadian Chamber of Commerce CEO Perrin Beatty criticized Ottawa’s inaction, urging the minister of labour to pursue binding arbitration.
Both CN and CPKC have accused each other of failing to negotiate in good faith. The Teamsters allege the companies are pushing to undermine worker protections, while CN claims it has made substantial offers. CPKC has called for binding arbitration, arguing that the union’s demands are unrealistic.
With the railways handling a combined $1 billion in goods daily, the ongoing disruption is causing widespread concern. Industries reliant on these rail networks are bracing for further delays, and Canadian ports are warning of potential congestion as cargo piles up.
The outcome of the resumed talks could determine not only the immediate fate of the railways but also the broader stability of Canada’s supply chains.
