Canada’s two largest freight railways shut down as union workers locked out

“The main obstacles to reaching an agreement remain the demands of the companies, not the proposals of the unions,” the union wrote in a statement on Thursday.

“Neither CN nor CPKC have relented in their efforts to loosen protections around rest periods and scheduling, increasing the risk of fatigue-related safety issues,” it added.

While rail shipments from Canada to the U.S. are halted, the companies’ U.S. routes would still be operational.

The shutdown could disrupt numerous U.S. industries, from autos to agriculture and energy. It could also disrupt local commuting.

“If rail traffic comes to a halt, businesses and families across the country will feel the impact,” Jay Timmons, president and CEO of the National Association of US Manufacturers, said in a statement Monday. “Manufacturing workers, their communities and consumers of all kinds of products will be left reeling from supply chain disruptions.”

US Transportation Secretary Pete Buttigieg said earlier this week on X that he was monitoring the negotiations, including “the impact on the flow of goods across our shared border.”

The negotiations echo the near shutdown in the US in 2022, when Congress stepped in to push for a new contract for unionized rail workers.

In Canada, companies are betting that a forced work stoppage — in which CN and CPKC ban employees from working, rather than a union-led strike — could prevent a more disruptive strike later this year.

“We are facing the peak season in the fall. You have a new Canadian grain crop, the first drought-free in two years,” CPKC spokesman Patrick Waldron told CNN. “You have Christmas presents in containers arriving at the ports. If this continues into the autumn shipping period, the consequences will be more serious.”