Canadian Rail Strike Threatens US Businesses

A looming Canadian rail worker strike, which could come as early as Thursday, has sparked calls from businesses in the United States for government intervention.

The potential rail stoppage, centering around a standoff between the Canadian Teamsters and major railway companies Canadian Pacific Kansas City (CPKC) as well as Canadian National Railway (CN), is raising alarm on both sides of the border.

On Tuesday, the U.S. and Canadian chambers of commerce issued similar statements, warning of the "significant impact" a strike could have on the U.S. economy.

"The US Chamber of Commerce and Canadian Chamber of Commerce are calling on the Government of Canada to immediately intervene to avert a disruption in the Canadian rail network. A stoppage of rail service will be devastating to Canadian businesses and families and impose significant impacts on the US economy," a statement from the U.S. Chamber of Commerce read.

The letter went on to point out that "any significant disruption" would impact those "on both sides of the border."

The Hill reported Union Pacific CEO Jim Vena emphasizing other such consequences of a strike: that as many as 2,500 rail cars destined for the U.S. could be stranded daily.

The core of the dispute involves the Canadian Teamsters' demand for greater transparency around worker scheduling, which they argue is crucial to preventing fatigue-related safety risks. The union has criticized CPKC's approach, stating, "CPKC is pressuring the union for concessions that would make it even harder for workers to predict when they might be called for work, creating a fatigue-related safety risk. The company is attempting to undermine Canada Labour Code provisions."

In response, CPKC has described its contract proposal as a "status quo-style contract renewal covering three years with competitive wage increases that are consistent with recent settlements."

The Teamsters, however, have refused to meet CPKC in private arbitration to negotiate, according to the company. Instead, they have remained steadfast in their dispute, citing concerns over worker safety. "The company is attempting to undermine Canada Labour Code provisions," the union stated.