Canadian labor conflict stops trains, threatens North American supply chains, as Trudeau government refuses to intervene

Both of Canada’s two national railroads are on strike as 9,000 workers walked off the job Thursday after the companies and the Teamsters Union failed to reach a deal. The strike could tie up cross-border trade between Canada and the US while seriously jeopardizing the North American supply chain, the Wall Street Journal reports.

Canada is the number one trading partner of the US. With Canadian National Railway (CNR) and Canadian Pacific Kansas City (CPKC) both shut down rail traffic has virtually come to a halt in Canada.

CNR said early Thursday that its last offer was rejected by the union just prior to workers being locked out. “We urge the Teamsters to engage in these negotiations with the urgency and importance that this situation requires,” the railroad said. Business leaders are urging government intervention and potentially back to work legislation.

"The minister of labour must use the tools at his disposal to immediately resolve this conflict through binding arbitration," said Canadian Chamber of Commerce chief executive Perrin Beatty in a statement Thursday, adding that Ottawa could have prevented the unprecedented shutdown but chose not to.

Ontario Premier Doug Ford also urged a speedy resolution to the strike, “The rail shutdown at CN and CPKC is already costing workers, transit users and businesses across the country, and we cannot afford to let things get worse.

“Both the employers and union leadership should get back to the table at once so they can reach a fair deal to end this shutdown and get people and goods moving once again.”

CPKC said despite the best efforts of the bargaining team, “It is clear that a negotiated outcome with the Teamsters is not within reach." The two sides have avoided negotiation throughout the last crucial week with the Teamsters saying that both railroads want worker concessions on scheduling and “fatigue management” that they say would adversely affect worker safety.

The union is blaming the CNR and CPKC for refusing to compromise but said wages are not preventing a resolution.

Labour Minister, Steven MacKinnon and Prime Minister Justin Trudeau have both refused to get involved in the labor impasse and that rejected repeated calls from business groups to intervene, saying it is a not yet the place of the government to interfere. The cost of not finding an agreement is estimated at $250 million a day, the WSJ noted.