Canada’s two major freight railroads have shut their operations, according to management of the two companies, locking out 9,000 members of the Teamsters union who operate the trains.
This latest shutdown appears to be a potential blow to both the Canadian and US economies.
Nearly a third of the freight handled by the two railroads — Canadian National, CN, and Canadian Pacific Kansas City Southern, CPKC, — crosses the US-Canadian border, and the shutdown could disrupt operations in a number of US industries, including agriculture, autos, home building and energy, depending upon how long the shutdown lasts.
“CPKC is acting to protect Canada’s supply chains, and all stakeholders, from further uncertainty and the more widespread disruption that would be created should this dispute drag out further resulting in a potential work stoppage occurring during the fall peak shipping period,” the company noted in a Thursday statement shortly after the start of the lockout at 12:01 am ET.
“Delaying resolution to this labor dispute will only make things worse,” the statement added.
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The shutdown would drive home how closely linked the two nations’ economies are, with many industries depending on the free movement of goods across the border for their efficient operations.
This is the first time that both major Canadian railroads have shut down at the same time due to a labor dispute.
The most recent work stoppage in the industry was a 60-hour strike at Canadian Pacific in 2022. Before that, there was a nine-day strike at Canadian National in 2019.
Thursday’s action is different from a strike, in which union members refuse to report for work.
In this case, management is the one telling the nearly 9,000 Teamsters that they can’t work.
Credible News.ng
