Canada’s labor minister has decided not to step in to resolve ongoing contract negotiations between the nation’s major railroads and their unions, heightening the risk of an imminent work stoppage. In response, both Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC) have halted acceptance of containerized freight.
Labor Minister Steve MacKinnon rejected a request from CN to enforce a labor law that the railway argued would ensure “industrial peace” during negotiations with the Teamsters Canada Rail Conference (TCRC). CN sought binding arbitration, claiming that the union had not engaged meaningfully in discussions.
MacKinnon’s office responded that it was up to CN and the TCRC to negotiate in good faith, though Canada’s mediation services would be available for support.
Following this decision, CN announced a phased shutdown of its Canadian network and warned that a failure to reach an agreement by August 22 could result in a lockout of employees. CN emphasized that prolonged disruptions would severely impact supply chains, leading to delays, potential shortages, and higher costs. CPKC issued a similar warning and indicated it would stop accepting new hazardous material shipments.
The Port of Vancouver, already struggling with congestion from earlier disruptions, could be significantly affected by any work stoppage, according to industry experts.
