Canadian Railroads Begin Lockouts, Threatening US Trade

Canada’s two largest freight railroad operators, Canadian National Railway (CNI) and Canadian Pacific Kansas City (CP), locked out nearly 10,000 workers overnight after unsuccessful negotiations with the Teamsters Canada union, threatening U.S. cross-border trade as services were shut down.

The lockouts could also hurt global supply chains as well as Canada, where international trade makes up about two-thirds of GDP.

CPKC Says ‘Acting To Protect Canada’s Supply Chains’

CPKC said it “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.”

Canadian National added it “has negotiated in good faith” over the past nine months, and that the “Teamsters have not shown any urgency or desire to reach a deal that is good for employees, the company and the economy.”

Teamsters Canada, meanwhile, said had made “multiple offers” to the two railroad operators over the past several days, but “none of which were seriously considered by either company.”