A Possible Canadian Rail Strike Could Impact U.S. Businesses: What You Need to Know | Aug 21, 2024

Last updated on August 29th, 2024 at 11:43 pm

A Possible Canadian Rail Strike

A Possible Canadian Rail Strike
Image by Miriam Müller from Pixabay

There’s a problem with labor in Canada that might lead to a strike by rail workers starting Thursday. This is making U.S. businesses worried because it could seriously affect their operations. Both the U.S. and Canadian business groups are asking the government to step in to prevent this from happening.

The U.S. and Canadian business groups are asking the Canadian government to step in and stop a possible rail strike. They’re worried that if the rail services in Canada stop, it will hurt Canadian businesses and families a lot and also affect the U.S. economy because the rail systems in both countries are connected.

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“The Government of Canada must take action to ensure goods continue to move reliably between our two countries,” the group said.

Union Pacific Railroad, a major U.S. company, said that ” 2,500 of their freight cars heading to the U.S. could get stuck in Canada every day if a strike happens “. This warning was sent to a Canadian official.

Canadian workers, represented by the Teamsters union, gave a 72-hour notice for a strike against a Canadian railway company called CPKC.

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In the second quarter of the year, CPKC made a profit of 903 million Canadian dollars. Over the past year, they’ve earned a total of 1.7 billion dollars in profit and brought in 7.1 billion dollars in revenue.

Earlier, CPKC said they would lock out the workers starting Thursday. Another Canadian company, Canadian National Railway (CN), also issued a similar lockout notice.

The Canadian railway company CPKC decided to issue lockout notices because the Canada Industrial Relations Board ruled that the company doesn’t have to keep any basic services running if a strike happens. CPKC also mentioned that the Teamsters union has refused to settle the dispute through private arbitration, which is a way to resolve conflicts without going to court.

The Canadian Teamsters union wants better clarity on when workers will be scheduled for work and other contract improvements. They say that CPKC, the railway company, is demanding changes that would make it harder for workers to know their schedules, which could lead to safety issues from fatigue.

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