Canada Faces Potential Rail Shutdown, Lockout; Costs Could Hit C$341 Million Daily

Aug 20, 2024, 11:17 PM

Canada is on the brink of a nationwide rail shutdown as labor negotiations between the country's two largest rail companies, Canadian National Railway and Canadian Pacific Kansas City, and the Teamsters union remain unresolved. The potential strike and lockout, set to begin Thursday, could have severe economic repercussions, affecting industries such as agriculture, chemicals, and transportation. The stoppage is estimated to cost up to C$341 million per day, with significant disruptions expected in the supply chain, including the transportation of goods like fertilizers and coal. Canadian Labor Minister Steven MacKinnon is actively involved in negotiations, meeting in Montreal and Calgary, urging both sides to reach an agreement. Prime Minister Justin Trudeau has also called for a resolution, emphasizing the importance of averting a strike to protect the Canadian and U.S. economies. Business groups and industry stakeholders are pressuring the government to intervene to prevent the strike, which could lead to widespread economic disruptions and impact more than 32,000 commuters in major cities.