Business Groups Urge Government Action to Prevent Rail Shutdown

OTTAWA – Hours before a potential shutdown of Canada‘s two major railways, a coalition of business organizations has intensified requests for the federal government to intervene and avert a work stoppage.

The Canadian Chamber of Commerce, Business Council of Canada, Canadian Federation of Independent Business, and Canadian Manufacturers and Exporters issued a joint statement urging Ottawa to ensure that the trains continue to operate.

They warned that failing to act could lead to severe economic consequences for Canadian families, workers, and businesses.

A gradual wind-down of services at Canadian National Railway Co. and Canadian Pacific Kansas City Ltd. is already underway as negotiations with the Canada Teamsters Rail Conference remain unresolved.

If a contract agreement is not achieved, rail service is set to stop at 12:01 a.m. EDT on Thursday.

The Canada Labour Code allows the federal labour minister to refer the dispute to the Canada Industrial Relations Board for binding arbitration and to temporarily prevent a strike or lockout.

The business groups have also suggested that the government consider passing legislation to enforce a return to work, similar to actions taken by the previous Conservative government in 2012 during a rail strike.

Prime Minister Justin Trudeau has emphasized the importance of the negotiating process, encouraging both parties to reach an agreement without requiring federal intervention.

He stated that millions of Canadians depend on both parties working towards a negotiated resolution.

Both rail companies have issued lockout notices, and the union has served a strike notice to CPKC, which will activate simultaneously.

Experts indicate that this work stoppage would mark the first simultaneous shutdown of Canada’s two largest rail companies, affecting approximately 9,300 engineers, conductors, and yard workers at CN and CPKC.

The trains for these railways transport goods worth approximately $1 billion daily, including various essential products.

Amid these developments, Canadian Pacific has halted nearly all new shipments, while Canadian National has taken similar measures to prevent goods from being stranded on the tracks.

Concerns arise that shipping containers could accumulate at ports, leading to significant congestion and rescheduling of shipments to U.S. terminals.

Victor Pang, chief financial officer at the Vancouver Fraser Port Authority, noted the importance of timely rail service in preventing terminal overloads.

Recent statistics show a 22 percent decline in vessel arrivals at the Port of Vancouver, as shippers attempt to avoid possible disruptions.

Moreover, over 32,000 rail commuters across the country will need to seek alternative transportation if CPKC ceases operations, which will impact various commuter lines in Toronto, Montreal, and Vancouver.

If the work stoppage occurs, select lines operated by TransLink, Metrolinx, and Exo will be suspended.

Additionally, riders on Via Rail’s Sudbury-White River line, which operates three times weekly in Northern Ontario, will also be affected.