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Canada's Major Freight Railways Halt Operations Amid Labour Dispute, Threatening Economic Fallout

August 22, 2024 3 min read
author Anamika Mishra, Sub Editor
Canada's two largest freight railroads, Canadian National (CN) and CPKC, have entirely suspended their operations due to an ongoing contract dispute with their workers, leading to a standoff that could inflict significant economic damage on businesses and consumers across Canada and the United States. The railroads locked out their employees after a Thursday deadline passed without reaching new agreements with the Teamsters Canada Rail Conference, which represents approximately 10,000 engineers, conductors, and dispatchers. This unprecedented dual work stoppage marks the first time that both rail companies have simultaneously faced such disruptions, as they have historically negotiated labour deals in alternate years. As a result, all rail traffic within Canada and shipments crossing the U.S. border have come to a standstill, though CPKC and CN trains will continue to operate in the United States and Mexico.Labour negotiations began earlier this year, but progress has been sluggish, with both the union and the companies accusing each other of negotiating in bad faith. The talks have hit a deadlock over issues related to the scheduling of rail workers and concerns about regulations designed to prevent fatigue and ensure adequate rest for train crews. The railroads proposed transitioning from the current system, which compensates workers based on the miles traveled, to an hourly pay system that they argue would allow for more predictable time off. Despite growing pressure from business groups, Canadian Prime Minister Justin Trudeau has so far declined to force the parties

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