Ten-thousand workers for Canadian Pacific Kansas City and Canadian National Railway are picketing due to ongoing disputes between the companies and Teamsters Canada Rail Conference. Business experts said this could have serious impacts on the Canadian and United States' economies.

What You Need To Know

  • Workers for Canadian Pacific Kansas City and Canadian National Railway, represented by Teamseters Canada Rail Conference, are picketing

  • It is estimated these companies transport $1 billion in goods per day

  • The economic impact of a drawn-out work stoppage could trigger a Canadian recession

  • It could also disrupt the supply chain through the United States and Canada

“If the strike only goes for a day or two, well it’ll be a minor disruption but we can easily bounce back from it," said Marvin Ryder, associate professor of marketing and entrepreneurship at McMaster University. "From Canada’s perspective, if this were to go a week or more, then this could be enough of a trigger to cause a recession."

Workers represented by TCRC are negotiating for better working conditions and safer railways. Historically, Ryder said, these stoppages have lasted between eight and 60 hours. Typically, CN and CPKC's contracts expire a year apart from one another but due to some extensions, they are up at the same time. Ryder said it is unlikely this will ever happen again.

“If I view this as the union, as a once-in-a-lifetime opportunity, then I might take a stronger line in all of this than I would otherwise," said Ryder.

“Throughout this process, CN and CPKC have shown themselves willing to compromise rail safety and tear families apart to earn an extra buck," TCRC union president Paul Boucher said in a statement. "The railroads don’t care about farmers, small businesses, supply chains, or their own employees. Their sole focus is boosting their bottom line, even if it means jeopardizing the entire economy.”

“We fully understand and appreciate what this work stoppage means for Canadians and our economy," CPKC said in a statement. "CPKC is acting to protect Canada’s supply chains, and all stakeholders, from further uncertainty and the more widespread disruption that would be created should this dispute drag out further resulting in a potential work stoppage occurring during the fall peak shipping period.”

They added it has been negotiating for nearly a year in good faith and have remained committed to doing its part to avoid this work stoppage. CPKC called TCRC's demands "unrealistic." The company said it has proposed a final offer that includes enhanced wages that exceed inflation, increased shift differentials, and resetting rest only at the home terminal.

Canadian National Railway said in a statement, “Over the last nine months, CN has negotiated in good faith. The Company consistently proposed serious offers, with better pay, improved rest, and more predictable schedules. The Teamsters have not shown any urgency or desire to reach a deal that is good for employees, the company, and the economy.”

CN said its conductors and locomotive engineers currently work about 160 days a year. The average conductor earns $121,000 before pension and medical benefits, and the average locomotive engineer earned approximately $150,000.

The companies have proposed binding arbitration to the union in order to expedite the process through a neutral third party.

Ryder said if this work stoppage lasts more than a week, it is possible the Canadian government could get involved.