Prime Minister Justin Trudeau called on Canada’s two largest railways and unionized workers to reach an agreement to avert a strike or lockout that businesses warn will cause significant harm to the Canadian and US economies.
Canadian National Railway Co. and Canadian Pacific Kansas City Ltd. plan to lock out more than 9,000 workers from the Teamsters Canada Rail Conference on Thursday at 12:01 a.m. New York time. The union issued a strike notice to Canadian Pacific for the same time. Trudeau said Labor Minister Steven MacKinnon is meeting with the parties in Calgary, following a meeting in Montreal on Tuesday.
MacKinnon declined a request from Canadian National to impose binding arbitration last week, but it remains an option as the hours tick down to the midnight deadline.
The strike would be the first in nearly six decades involving both railway companies, which account for 80% of the Canadian rail network. Business groups have said C$1 billion ($736 million) in goods are transported by rail each day in Canada. A rail stoppage would also thwart some commuters in Toronto, Montreal and Vancouver.
Brendan LaCerda, an economist with Moody’s Corp., estimates that the direct economic damage of a rail strike would be C$341 million per day. That estimate excludes indirect impacts, such as a hit to consumer and business confidence or an increase in the rate of inflation.
“The industries hit hardest by a rail strike would be paper and wood products, agriculture and farming, exporters, motor vehicles, metals, and quarrying,” he wrote in a report to investors on Wednesday.
The dispute has already begun to impact the movement of products including wheat, chemicals and fertilizers throughout Canada and the US. The two rail operators started a phased shutdown of the network last week and AP Moller-Maersk told customers it was no longer accepting shipments for Canada that need to travel by train — though a spokesperson later said that was a miscommunication.
Multiple industry and business associations, including the US Chamber of Commerce and its Canadian counterpart, have urged Trudeau’s government to step in to stop a “devastating” rail stoppage from happening. US Transportation Secretary Pete Buttigieg has said his department is closely monitoring the negotiations, engaging with Canadian officials and tracking the flow of vital goods to US consumers and businesses.
The union is seeking stronger provisions around rest time, while the companies say their offers meet regulatory requirements and in no way endanger safety.
Deputy Prime Minister Chrystia Freeland also urged the companies and union to swiftly resolve their dispute, telling reporters in Edmonton that she has “no patience with dilly dallying” given the “serious” consequences. Freeland, who’s also finance minister, declined to comment on what it would take for the federal government to intervene, adding that she thinks the best deals are reached at the bargaining table.
“I want them to roll up their sleeves to recognize Canadians need them to get this done, to reach a deal so we can keep on moving forward,” she said.
