Canada's Rail Shutdown: CN Resumes, CPKC Dispute Continues After Government Intervention

Aug 22, 2024, 09:10 PM

Canada's two largest railways, Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC), faced an unprecedented shutdown due to a labor dispute with the Teamsters Canada Rail Conference. The shutdown began after both companies locked out their employees at 12:01 a.m. on August 22, 2024, following failed contract negotiations. The stoppage threatened to disrupt North American supply chains, affecting industries reliant on rail transport for goods such as grains, chemicals, and automobiles. The railways carry about $740 million in trade per day. The Canadian government intervened swiftly, with Labour Minister Steve MacKinnon ordering binding arbitration to resolve the dispute, leading to the resumption of operations. CN workers began returning to work on August 23, but CPKC's operations remained halted as the union contested the arbitration order. The shutdown was estimated to cost Canada up to C$341 million per day, with significant economic implications for both Canada and the U.S.