The Canadian government has ordered the country’s two major railroads, Canadian National and CPKC, into arbitration with their labor union to end a lockout that began due to a contract dispute. The union representing engineers, conductors, and dispatchers accused the railroads of creating a crisis to force government intervention. The railroads agreed to work to get trains moving again, while the union reviewed the decision. Both sides negotiated unsuccessfully, leading to the government stepping in to force arbitration.
The government’s action came to avoid potentially dire economic consequences, given that all freight in Canada worth over $1 billion Canadian a day stopped moving during the lockout. More than 30,000 commuters were also affected, as CPKC’s lines are used for commuter trains. The government decision was met with criticism from the union but was supported by the railroads. The railroads had stopped accepting new shipments of hazardous materials and perishable goods as they gradually shut down, impacting chemical businesses and food distributors.
If the lockout had persisted, significant disruptions to the auto industry relying heavily on rail transport for parts and finished vehicles were forecasted. Ports and other railroads risked being clogged with stranded shipments if Canadian National and CPKC did not resume operations. The government has emphasized the need for rail service to continue running to prevent severe disruptions to supply chains and the economy. While previous rail stoppages in Canada have typically been short-lived, the impact of a prolonged lockout involving both major railroads would have had more significant consequences.
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