Over 9,000 rail workers were locked out of Canada's two major railroads yesterday amid failed contract negotiations with the Teamsters union. The stoppage is expected to cost roughly $750M per day and potentially disrupt US-Canada trade, 14% of which stems from Canada's rail network. Canada's government announced it would force the parties into arbitration.
Canadian National Railway and Canadian Pacific Kansas City together operate over 40,000 miles of tracks in Canada, the US, and Mexico, transporting 700 million metric tons of cargo annually, representing $277B in goods. Shipments of metal, grain, and fuel will be stopped, as well as the vital chlorine supply used to sanitize public water. Tens of thousands of passengers will also likely be impacted.
Union representatives are seeking better wages and safer scheduling to manage fatigue (see negotiations timeline). Both sides indicated Thursday they were not close to an agreement.
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