Canada Railways Warns of August 22 Lockout Without Labor Deal, Reports Reuters

OTTAWA – Canada’s two primary rail companies announced on Friday that they would lock out employees on August 22 if negotiations for a new labor contract do not reach a resolution, a decision that could disrupt the transport of goods across the country.

A potential strike or lockout poses a serious threat to Canada’s economy, which is heavily reliant on its railway network due to the nation’s vast geography and the export of key commodities such as grain, potash, and coal.

Canadian Pacific Kansas City (CPKC) and Canadian National Railway, in conjunction with the Teamsters union, agreed last week to resume stalled contract discussions with the assistance of a federal mediator.

However, Canadian National expressed a loss of confidence in the negotiation process, claiming that the Teamsters have not been willing to participate in constructive discussions. They have formally requested intervention from Labour Minister Steven MacKinnon.

MacKinnon, who had previously encouraged both parties to continue negotiating, was not immediately available for comment.

The Teamsters union, concerned that the rail companies’ proposals could threaten safety standards, stated they would provide 72 hours’ notice prior to any strike action.

CPKC has indicated that it would begin locking out workers on August 22 to protect the country’s supply chains from more extensive disruptions that could arise during the busy fall shipping season.

Teamsters spokesperson Christopher Monette criticized the CPKC announcement as “unexpected and needlessly antagonizing,” particularly with 13 days of negotiations remaining before the lockout date.