Proactive Investors - Freight traffic on Canada's two largest railways, Canadian National Railway (TSX:CNR) (NYSE:CNI) Co. and Canadian Pacific Kansas City (TSX:CP) Ltd., has ground to a halt after both companies locked out 9,300 workers following failed contract negotiations with the Teamsters Canada Rail Conference.
The shutdown, a first in Canadian history, poses a major threat to supply chains across industries like agriculture, mining, energy, and retail, which are still recovering from pandemic-related disruptions and last year’s port strike.
The work stoppage has also disrupted commuter rail services in Toronto, Montreal, and Vancouver, leaving tens of thousands of passengers stranded.
Business groups, including the Canadian Chamber of Commerce, are calling for immediate government intervention through binding arbitration.
Prime Minister Justin Trudeau has urged both sides to reach an agreement at the bargaining table.
The railways, which transport a combined $1 billion in goods daily, had halted many shipments in advance to prevent cargo from being stranded. With US railways also turning away Canada-bound shipments and Canadian ports fearing congestion, the economic impact of the shutdown is expected to escalate if the dispute is not quickly resolved.