Canadian Prime Minister Justin Trudeau called on the nation's leading rail corporations and the Teamsters union to resolve their disputes and prevent a potential shutdown that could lead to billions in economic losses. However, the likelihood of a sudden agreement seemed to fade when Canadian National Railway announced the collapse of negotiations and requested government intervention. Both CN Rail and Canadian Pacific Kansas City plan to lock out employees unless new agreements are reached by Thursday morning. This would mark the first simultaneous shutdown of both companies. Negotiations have stalled, with each party blaming the other for lack of sincerity. Trudeau emphasized the importance of continued efforts to reach a negotiated solution, highlighting the impact on millions of Canadians, including workers, farmers, and businesses.
Federal Labour Minister Steven MacKinnon met with CN executives in Montreal and CPKC in Calgary to discuss the ongoing issue. Canada, the second-largest country globally by land area, heavily depends on rail transport for the movement of various goods and commodities. Finance Minister Chrystia Freeland expressed deep concern over the potential self-sabotage of the national economy and urged both employers and the union to expedite negotiations. Moody's Analytics estimated that a shutdown of 75% of Canada's freight rail traffic could cost the economy C$341.5 million daily, equivalent to over 4% of the nation's GDP.
CN urged the labour minister to intervene, stating that a deal is unattainable without a cooperative partner. Although MacKinnon has the authority to escalate the dispute to binding arbitration, the government prefers a resolution at the negotiation table. A coalition of business associations appealed to the federal government to prevent a rail stoppage, emphasizing the need for leadership to avert economic stagnation. The Teamsters accuse CN and CPKC of seeking to compromise worker safety, a claim both companies refute. Dean Roberts of the Canola Council of Canada warned of a looming disaster if a deal is not reached. Maersk, a major container freight group, is assessing contingency plans in Canada following the shutdown of the main freight rail networks.
