In August 2024, the dispute between Canada’s two major railway companies—Canadian Pacific Kansas City and Canadian National Railroad—and the Teamsters Canada Rail Conference union escalated over the renewal of the collective bargaining agreement. Negotiations, which began at the start of 2024, broke down, leading to a lockout on August 22 by the two rail companies. This action halted freight trains and left approximately ten thousand workers at home.
The following day, the union responded with a railway workers' strike, coinciding with the resumption of freight train operations. The government then stepped in, mandating the suspension of protest actions and directing the parties to arbitration by the Canada Industrial Relations Board. However, union representatives have vowed to continue their mobilization and have filed an appeal against the imposition of mediation.
The dispute is causing significant damage to the Canadian economy, with ripple effects on the U.S. economy as well, given that the majority of freight shipments are handled by these two companies. Moody's estimates daily losses at $225 million. The union is demanding not only wage increases but also improvements in working conditions and a new approach to scheduling for railway workers. The Teamsters argue that the railway companies are seeking to extend working hours, which they claim could compromise safety on the tracks.
