Canada’s 2 major freight railroads come to a full stop as labour talks collapse | CBC News

Trains across the country have ground to a halt as 9,300 workers were locked out by both of Canada’s major railways after they failed to agree on a new contract before a 12:01 a.m. EDT deadline.

The shutdown marks the first-ever simultaneous work stoppage at Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC) and threatens to upend supply chains.

The companies haul about $1 billion in goods each day combined, the Railway Association of Canada says, some of which was pre-emptively stopped to avoid having cargo stranded.

Transit authorities have said select commuter lines that run on Canadian Pacific tracks in Toronto, Montreal and Vancouver will be suspended.

Business groups have demanded the government step in by imposing binding arbitration and barring strikes and lockouts as the process plays out.

Prime Minister Justin Trudeau on Wednesday had called on both sides to work out a deal at the bargaining table.

Affected industries include agriculture, mining, energy, retail, automaking and construction.

Commuters affected

Ports fear containers will pile up on the docks as cargo goes unmoved, causing congestion down the line and prompting some carriers to reroute to U.S. terminals.

More than 32,000 rail commuters across the country will also have to find new routes to the office.

Lines affected by the potential work stoppage are TransLink’s West Coast Express in the Vancouver area, Metrolinx’s Milton line and the Lakeshore line’s Hamilton GO station in the Greater Toronto Area, and Exo’s Candiac, Saint-Jerome and Vaudreuil/Hudson lines in the Montreal area.

Negotiations collapse

Rail traffic controllers at CPKC will continue work until 2:01 a.m. ET, the company says.

The Teamsters Canada Rail Conference (TCRC), which represents workers from both railways, has demanded better wages, benefits and working conditions.

“The main obstacles to reaching an agreement remain the companies’ demands, not union proposals,” a release from the union said. “Neither CN nor CPKC has relented on their push to weaken protections around rest periods and scheduling, increasing the risk of fatigue-related safety issues.

“CN also continues to demand a forced relocation scheme, which could see workers ordered to move across the country, tearing families apart in the process,” the union said in a statement.

CPKC released a statement saying the union is to blame for the failed negotiations, citing “unrealistic demands” that would hinder the company’s ability to serve its customers reliably.

CN said its offer included better pay, among other benefits, however the company also pointed the finger at the union for not reaching a deal.

“Without an agreement or binding arbitration, CN had no choice but to finalize a safe and orderly shutdown and proceed with a lockout,” a statement from the railway said.