Canadian Rail Strike/Lockout in Effect

Trade Update • August 22, 2024

ore than 9,300 Canadian National Railway Co. (CN) and Canadian Pacific Kansas City Ltd. (CPKC) railway workers have commenced a rail strike and lockout effective 00:001 ET today. It is an unprecedented simultaneous work stoppage that will grind almost all railway freight movement in the country to a halt.

Collapse of Negotiations

Parties bargained late into the night Wednesday at hotels in Montreal and Calgary before talks broke off shortly before midnight.

Each side has accused the other of failing to negotiate seriously. “The railroads don’t care about farmers, small businesses, supply chains or their own employees. Their sole focus is boosting their bottom line, even if it means jeopardizing the entire economy,” claimed Teamsters president Paul Boucher in a statement early Thursday morning.

Bargaining played out in separate negotiations between each company and the Teamsters, which represents 6,000 CN workers and 3,300 CPKC workers.

CN said it has negotiated in good faith over the past nine months. “The company consistently proposed serious offers, with better pay, improved rest and more predictable schedules. The Teamsters have not shown any urgency or desire to reach a deal that is good for employees, the company and the economy,” CN stated.

CPKC called for binding arbitration, saying the union has made “unrealistic demands.”

Business groups have also demanded the government step in by imposing binding arbitration and barring strikes and lockouts as the process plays out.

– Excerpt from CBC.

Disruptions

The level of disruption caused by the ongoing strike will affect the transportation of many types of goods, particularly affecting the transition of imports from oceanic arrivals to rail terminals. The movement of freight between rail junctions and seaports will also be hindered. Affected industries include agriculture, mining, energy, retail, auto-making and construction. U.S. railways have also had to turn away Canada-bound shipments.

Shipping Alternatives

Businesses should seek alternative land transportation options with their freight handlers. Moreover, importers need to prepare for potential demurrage fees (these charges are the responsibility of the importer) due to the storage of their goods at Canadian marine terminals, as this labour dispute will lead to delays.

For questions or concerns about if your products are affected please contact us.