Canada rail freight traffic comes to a standstill over labour dispute

The standoff could cause economic damage and supply chain problems for businesses and consumers in Canada and the US.

Canada’s two major freight railroads have completely halted operations due to a contract dispute with their workers in a standoff that could cause considerable economic damage to businesses and consumers in both Canada and the United States.

Canadian National (CN) and CPKC railroads both locked out their employees after the Thursday deadline passed without new agreements with the Teamsters Canada Rail Conference which represents some 10,000 engineers, conductors and dispatchers.

This is the first time the country has faced simultaneous work stoppages at the two companies, which in the past have negotiated labour deals in alternate years.

All rail traffic in Canada and all shipments crossing the US border have stopped, although CPKC and CN’s trains will continue to operate in the US and Mexico.

Labour talks started early this year, but progress has been slow with both the union and the companies accusing each other of bad faith.