Canada’s two largest railways, Canadian Pacific Kansas City (CPKC) and Canadian National Railway (CN), have halted their freight networks this morning following the collapse of contract talks with the Teamsters union. The shutdown came after months of negotiations failed to reach an agreement.
Both railways announced the lockout of their unionized workers despite warnings from businesses and politicians about the potential economic fallout. The Teamsters, representing nearly 10,000 railway employees, had been in separate discussions with CPKC and CN. While a strike notice had been issued against CPKC, CN had not faced such action.
The union highlighted unresolved issues including fatigue management and quality of life concerns. They criticized the railways for addressing labor shortages by extending workers’ shifts and increasing travel distances.
Both railways have extensive U.S. operations, and CPKC’s network also includes Mexico. None of these routes is affected by the shutdowns. However, both railways had imposed gradual shutdowns leading up to this morning’s move. This included refusing to handle any domestic or foreign cargo destined for Canada and reducing some volumes at U.S. railway companies.
Red: Canadian Pacific Kansas City Yellow: Pacific Kansas City
Talks are scheduled to resume later today in Montreal and Calgary. The immediate effects on commodity shippers are already apparent, though the impact on consumers may take longer to manifest. Experts anticipate disruptions in the flow of fruits and vegetables from California and a reduction in the variety of soft drinks and other products as manufacturers and suppliers prioritize top-selling items.
