Possible Rail Disruption Looms In North America

With negotiations at an impasse, Teamsters Canda, the union representing over 9,000 workers at Canadian National Railway and Canadian Pacific Kansas City, has announced the potential for strikes commencing May 22nd. The union alleges that the railways are pushing to diminish safety provisions, sparking fears of supply chain disturbances.

The looming strikes could reverberate from Canada, the United States and Mexico given the extensive track coverage of approximately40,000 miles. Previous strikes at Canadian ports in 2023 had significant economic repercussions, disrupting shipping operations and having a significant impact on Canada’s GDP.

While federal labor conciliators are aiding negotiations, there remains a noticeable disparity between the parties’ stances. Canadian National has reached a labor agreement with the United Steelworkers Local 2004, covering wage hikes, benefits, and strategies to bolster productivity while curbing outsourcing. However, broader talks with Teamsters Canada remain gridlocked, with the union citing safety concerns and disputing the railways’ assertions regarding work schedules.

 

If you have any questions, please contact your local Noatum Logistics representative.