As per reports, a potential labor strike on Canada’s two national railways, Canadian National Railway Company and Canadian Pacific Kansas City Limited, has raised concerns among industry groups about the potential impact on consumers and businesses from Thursday (22 August).

• Both railways have started a phased shutdown of their networks as negotiations continue with the Teamsters Canada Rail Conference to reach a new labor contract. If no agreement is reached by the deadline, the rail companies plan to lock out workers early Thursday (22 August), while the union has indicated its readiness to strike on the same day.
• The two railways collectively move goods worth USD one billion per day, with key products like grain, fertilizer, and lumber being at high risk of disruption.
• Industry leaders, warn that the labor stoppage could severely affect the harvest season, leading to potential backlogs and delays in food distribution.
• Perishable goods, including meat, french fries, and fruits, have already stopped being accepted by the railways, heightening concerns about possible shortages and increased costs.
• The shortage of truck drivers and the higher cost of road transport are expected to exacerbate the situation, leading to increased prices for consumers and potential slowdowns in manufacturing.
• Business groups are urging the federal government to intervene, suggesting options like binding arbitration or back-to-work legislation to prevent a prolonged disruption that could harm Canada’s economy and international trade relationships.