Canadian railroad labor dispute lockouts could have major US economic impact

BOTH OF CANADA’S MAJOR FREIGHT RAILROADS HAVE PUT A PAUSE ON OPERATIONS DUE TO A CONTRACT DISPUTE WITH THEIR WORKERS. 

SOME ECONOMISTS ARE NOW WARNING THIS SHUTDOWN COULD HAVE SERIOUS ECONOMIC CONSEQUENCES FOR BOTH CANADA **AND THE **U.S. IF THE TRAINS DON’T START RUNNING AGAIN SOON.

THE TWO RAILROAD COMPANIES LOCKED OUT THEIR EMPLOYEES AFTER CONTRACT NEGOTIATIONS FAILED TO REACH AN AGREEMENT BY MIDNIGHT THURSDAY.

THE UNIONIZED WORKERS INCLUDE ABOUT 10,000 ENGINEERS, CONDUCTORS, AND DISPATCHERS.

AS A RESULT OF THE UNION AND RAILROAD COMPANIES NOT COMING TO AN AGREEMENT ON WORKERS’ CONTRACTS –

ALL RAIL TRAFFIC IN CANADA AND SHIPMENTS CROSSING THE U.S. BORDER –

HAVE STOPPED. 

THE DISRUPTION DOESN’T JUST IMPACT GOODS. 

OVER 30,000 COMMUTERS IN VANCOUVER, TORONTO, AND MONTREAL, WILL HAVE TO FIND ALTERNATIVE TRANSPORTATION DUE TO THE LOCKOUT.

WHILE THE TRAINS HAVE STOPPED MOVING IN CANADA –

THE RAILROAD COMPANIES ARE CONTINUING TO RUN IN THE U.S. AND MEXICO.

BUT GOODS THAT ARE LOADED UP IN CANADA TO THE U.S. ARE AT A STANDSTILL.

WHILE IT’S JUST DAY ONE –

IF THE LOCKOUT LASTS A LONG TIME – CANADA **AND THE U.S. WILL SEE REPERCUSSIONS.

BILLIONS OF DOLLARS IN GOODS MOVE **MONTHLY BETWEEN CANADA AND THE U.S. BY TRAIN.

DESPITE SOME BUSINESS GROUPS URGING FOR OUTSIDE INTERVENTION, PRIME MINISTER JUSTIN TRUDEAU HAS NOT YET FORCED ARBITRATION BETWEEN THE TWO SIDES. 

ONE OF THE RAILROAD COMPANIES – “CANADIAN NATIONAL” SAYS IT’S STILL AWAITING A RESPONSE FROM THE WORKERS’ UNION TO ITS FINAL OFFER MADE JUST BEFORE THE LOCKOUT.

THE OTHER RAILROAD COMPANY – CPKC – SAYS THE UNION REJECTED ITS LAST OFFER.

BOTH RAILROADS HAVE STATED THEY WILL END THE LOCKOUT IF THE UNION AGREES TO BINDING ARBITRATION.

NEGOTIATIONS HAVE BEEN ONGOING FOR NINE MONTHS WITH CANADIAN NATIONAL AND FOR A YEAR WITH CPKC. 

THE U.S. WAS ABLE TO NARROWLY AVOID ITS OWN RAIL STRIKE TWO YEARS AGO –

WHEN THE U.S. GOVERNMENT INTERVENED AND FORCED WORKERS TO ACCEPT A CONTRACT IN ORDER TO KEEP THE ECONOMY CHURNING.

BUT THE U.S. FACES A NEW TRANSPORT DISRUPTION –

THIS ONE INVOLVING PORT WORKERS ALONG THE EAST COAST.

85 THOUSAND UNIONIZED WORKERS COULD STRIKE IN LESS THAN 60 DAYS IF THEIR CONTRACT DEMANDS AREN’T MET.

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