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Rail lockouts set for August 22 as Canadian talks stagnate

CN and CPKC railways are on the verge of a significant disruption, with potential worker lockouts scheduled for August 22.

Railroad Track Crossing Pixabay

Canadian rail operations are on the brink of a major disruption as both Canadian National Railway (CNR) and Canadian Pacific Kansas City (CPKC) prepare for a simultaneous lockout of workers on August 22, unless labor agreements are reached. The potential lockouts could inflict severe economic damage, with billions at stake, as negotiations with the Teamsters' union, representing about 10,000 workers, remain deadlocked.

These rail giants not only dominate the Canadian rail sector but are crucial for the North American supply chain, linking vast trade corridors and ports across the continent. The potential lockouts are poised to disrupt these critical networks that transport a significant portion of commodities like grain, fertilizers, metals, and industrial products.

As the cooling-off period mandated by the Canada Industrial Relations Board (CIRB) concludes on August 22, the rail companies have expressed their intention to lock out the workers if no deal is reached. This decision follows the CIRB's ruling that no essential services need to be maintained during a strike or lockout for public health and safety.

CPKC has proposed binding interest arbitration to resolve the dispute, which has been rejected by the TCRC. This has led CPKC to prepare for a lockout by planning an embargo for all toxic by inhalation (TIH) dangerous goods to ensure these materials safely exit the network before any work stoppage.

As the deadline approaches, the industry and Canadian economy brace for the impact of potential lockouts. Both CNR and CPKC are critical for the movement of goods not only within Canada but as part of the broader North American trade network, emphasizing the high stakes of the current labor negotiations.

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