Business Organizations Urge Federal Government to Avert Rail Service Disruption

A coalition of business groups is urging the federal government to take action to prevent a potential work stoppage at Canada’s two largest railways.

The Canadian National Railway Co. and Canadian Pacific Kansas City Ltd. are currently in contract talks with the Teamsters Canada Rail Conference, and a phased shutdown of their networks has begun. If agreements are not reached, rail services at both companies are set to cease at 12:01 a.m. EDT on Thursday.

The Canadian Chamber of Commerce, Business Council of Canada, Canadian Federation of Independent Business, and Canadian Manufacturers and Exporters have issued a joint statement calling on Ottawa to intervene to ensure the continuation of rail services. They suggest that the federal labour minister can refer the dispute to the Canada Industrial Relations Board for binding arbitration and prevent any strike, lockout, or ongoing stoppage until a resolution is reached. Alternatively, they propose the government use back-to-work legislation.

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Labor Minister Steven MacKinnon has emphasized the importance of the parties reaching a deal independently without federal intervention through back-to-work legislation. A potential work stoppage by a total of 9,300 employees at CN and CPKC would be unprecedented, as it would be the first simultaneous shutdown at the country’s largest rail companies, according to experts.

These companies transport goods worth $1 billion daily, including canola and consumer electronics, as reported by the Railway Association of Canada. With CSX and Norfolk Southern railways in the U.S. closing their gates to most cross-border shipments and shipping companies like Hapag-Lloyd making contingency plans and rerouting cargo, the impact of the potential strike is significant.

Furthermore, over 32,000 rail commuters nationwide would need to find alternative routes to work if there is a work stoppage at CPKC. Transit authorities have announced the suspension of select commuter lines that operate on CPKC tracks in Toronto, Montreal, and Vancouver in the event of dispatchers walking off the job.

The affected commuter lines include TransLink’s West Coast Express in Vancouver, Metrolinx’s Milton line and Lakeshore line’s Hamilton GO station in the Greater Toronto Area, and Exo’s Candiac, Saint-Jérôme, and Vaudreuil/Hudson lines in Montreal.