A Canadian railroad company failed to reach a new collective bargaining agreement on Thursday, locking out more than 9,000 employees in a move that could have billions of dollars’ worth of impacts on U.S. trade, The Wall Street Journal reported.
The Kansas City branches of Canadian National Railway and Canadian Pacific Railway locked out employees after negotiations with the Teamsters Canadian Railway Council reached an impasse and no deal was reached by a 12:01 a.m. ET deadline, the WSJ reported. ReportedDecision Confuse Much of the hundreds of millions of dollars of trade that passes through the U.S.-Canada border every day could be disrupted in the U.S. supply chain. (Related story: Airline union tells workers to prepare for strike that could jeopardize summer travel plans)
“The economic impact of a railroad interruption of this magnitude would be devastating to local communities and, given interconnectivity, would impact the movement of goods both within and outside the United States,” the USDA said. Written An article on the effects of the August 15th Canadian rail strike.
🚨 **Canada’s Rail Crisis** 🚂
**LOCKOUT IN ACTION:** CN and CPKC have locked out over 9,000 workers and halted rail service.
**Economic Impact:** Estimated daily cost to Canada is CAD $341 million, affecting $740 million in trade per day.
**Supply Chain Disruptions** Key commodities such as… pic.twitter.com/uZ8MJwpPgQ
— Interlane Hub (@interlanehub) August 22, 2024
The lockout could cost Canada more than $251 million a day in lost revenue, hurting its grain, coal and oil exports, as well as U.S. agricultural exports to Canada. According to To Reuters. Canada to buy $28.3 billion worth of U.S. agricultural products in 2023.
The WSJ said Canada supplies about 60 percent of the chlorine used in water treatment plants in the western U.S., which could pose a risk to the U.S. water supply.
“If this problem is not solved, chlorine [from Canada] “If the water stops flowing again, we will be issuing a boil water advisory to protect public health,” Bob Masterson, president of the Canadian Chemical Association, told the Journal.
Canadian Pacific Kansas City Railway and Canadian National Railway each operate approximately 20,000 miles of track, stretching from the east and west coasts of Canada to the southern U.S. Canadian National alone moves approximately 300 million tonnes of freight each year.
Despite the huge costs, the Canadian government has been reluctant to enter into negotiations, with the Canada Labour Relations Board determining that the rail shutdowns do not affect public health and therefore are not subject to federal intervention, the Journal reported.
“Canadian National Railway and the Teamsters Canadian Railway Council want to be clear that it is our shared responsibility to negotiate in good faith and work diligently towards a new collective agreement,” Canada’s federal labour minister, Stephen McKinnon, wrote in an Aug. 15 memo. Obtained According to the WSJ.
The Teamsters Canadian Railway Congress claims the dispute is over a “fatigue clause” in the collective bargaining agreement, with union representatives saying the company is trying to force crews to work longer hours and less safely. According to Canadian Pacific Kansas City denied the allegations, saying its proposal was “fully compliant with new regulatory requirements.”
Meanwhile, as of Aug. 18, Canadian National claims it has offered workers four different contracts covering wages, rest and labour supply, all of which have been rejected, CBC News reported Sunday.
Teamsters Canadian Railway Congress, Canadian National and Canadian Pacific Kansas City did not immediately respond to requests for comment.
All content produced by the Daily Caller News Foundation, an independent, nonpartisan news service, is available free of charge to any legitimate news publisher with a large readership. All republished articles must include our logo, reporter byline, and affiliation with the DCNF. If you have any questions about our guidelines or partnering with us, please contact us at licensing@dailycallernewsfoundation.org.
