Canadian Railroads on the Brink of Collapse: Mass Freight Shutdowns and Railroad Worker Protests

After Canada’s two largest railway operators—Canadian National Railway Co. and Canadian Pacific Kansas City Ltd.—suspended operations, the country is facing an unprecedented freight shutdown, this is reported by the railway transport news portal Railway Supply.

This crisis has led to widespread disruptions, putting Canadian railroads on the brink of collapse.

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Negotiators returned to the table on Thursday, but significant disagreements remain. The impact of freight shutdowns on the Canadian economy is already severe, exacerbating existing supply chain issues affected by the pandemic and last year’s port strike.

Railroad worker protests have erupted from Halifax to Vancouver. Workers staged pickets on Thursday morning, protesting outside CN headquarters in Montreal and CPKC offices in Calgary. The Canadian railway strikes are adding to the strain on an already troubled sector.

Each side blames the other for not taking negotiations seriously. Both rail operators have called for mandatory arbitration, but the Teamsters Canada Rail Conference union has rejected this proposal. Teamsters Canada President François Laporte stated that decisions should be made at the negotiating table, not by a third party.

The union believes that the companies are seeking to weaken protections for railroad workers concerning rest periods and work schedules.

CN also plans to introduce a “moving scheme,” under which some employees would be sent to remote regions for several months. This proposal has been met with resistance.

CN claims that over the past nine months, the company has offered serious terms, including wage increases, improved rest periods, and more predictable schedules.

However, Teamsters accuses the company of not being willing to reach a favorable agreement for the workers and the economy. The union’s stance highlights ongoing railway labor disputes in Canada.

In addition to freight traffic, the strike has also impacted up to 32,000 passengers in Toronto, Montreal, and Vancouver, whose lines run on CPKC tracks. Passenger trains cannot operate on these routes, further compounding the disruption.

The situation requires government intervention. Industry groups and the government have been calling for an immediate resolution to the conflict for several weeks.

The Canadian Chamber of Commerce is urging the government to impose mandatory arbitration and to ban strikes and blockades during this period. The Minister of Labour has broad powers to resolve the conflict, including referring it to the Canadian Labour Relations Board.

Railroads transport goods worth approximately $1 billion daily, and as the conflict continues, the economic damage to Canada could reach up to $341 million per day, with particularly severe impacts on agriculture, forestry, and manufacturing.

The ongoing crisis underscores the urgent need to address the mass shutdowns in Canadian rail freight.

Canadian Prime Minister Justin Trudeau has called for the parties to settle the issue at the negotiating table, emphasizing Canadians’ concerns. The unions represent 6,000 CN railroad workers and 3,300 CPKC employees.

Operators are seeking a three-year contract with no substantial changes but with wage increases above the inflation rate. Railroad worker strikes highlight the challenging conditions and high stakes involved.

The shutdown’s repercussions have also affected the U.S.: American railroads are refusing to ship goods to Canada, and Canadian ports are facing fears of container accumulation and overload. The Canadian railroad collapse news reflects the broader implications of this critical situation.

Photo: Canadian Pacific

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