Canadian Government Moves to End Rail Stoppage

UPDATE Aug 23, 2024 12:24 PM CDT

One of Canada's two major freight railroads resumed operating Friday after a stoppage that threatened the economy across North America. Canadian National trains began rolling at 7am all across Canada. Trains operated by the second company CPKC remained parked as the union representing the railways' 10,000 employees prepared to challenge a government order to enter arbitration to resolve a contract dispute, the AP reports. The Canadian government forced the country's two major railroads into arbitration with the union, the Teamsters Canada Rail Conference, late Thursday afternoon. The union issued a 72-hour strike notice to CN hours after trains began rolling again, but trains are expected to keep moving at least through Monday morning.

Aug 22, 2024 6:09 AM CDT

Both of Canada's major freight railroads have come to a full stop because of a contract dispute with their workers. The impasse could bring significant economic harm to businesses and consumers in Canada and the US if the trains don't resume running soon, the AP reports. Canadian National and CPKC railroads both locked out their employees Thursday after the deadline of 12:01am Eastern passed without new agreements with the Teamsters Canada Rail Conference, which represents some 10,000 engineers, conductors, and dispatchers.

All rail traffic in Canada and all shipments crossing the US border have stopped, although CPKC and CN's trains will continue to operate in the US and Mexico. Billions of dollars of goods each month move between Canada and the US via rail, according to the US Department of Transportation. "If rail traffic grinds to a halt, businesses and families across the country will feel the impact," Jay Timmons, president and CEO of the National Association of Manufacturers, said in a statement. "Manufacturing workers, their communities, and consumers of all sorts of products will be left reeling from supply chain disruptions."

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Canada sends most of its exports to the US by rail and a prolonged strike could affect supplies of goods including grains, coal, and timber, the BBC reports. Business groups have urged the government to intervene, but Prime Minister Justin Trudeau has so far declined to force both sides into arbitration. The negotiations are stuck on issues related to the way rail workers are scheduled and concerns about rules designed to prevent fatigue and provide adequate rest to train crews, reports the AP. Similar quality-of-life concerns about demanding schedules and the lack of paid sick time nearly led to a US rail strike two years ago, until Congress and President Biden intervened and forced the unions to accept a deal. (More railroad stories.)