Canadian Rail Dispute Disrupts Canada Freight Causing Potential Devastating U.S. Impact

A lockout early today, Thursday, August 22, stopped all rail freight across Canada, idling more than 10,000 workers and threatening to disrupt supply chains in the United States, which receives more than 6,500 containers daily from Canada. 

After months of talks, Canadian National Railway and Canadian Pacific Kansas City have failed to reach an agreement with the Teamsters Canada union on work hours, scheduling, labor availability, some wage issues, and rest periods.

Potentially devastating economic consequences threaten the Canadian and U.S. economies if the dispute lasts more than a few days. Estimated cost to the Canadian economy of a three-day strike is $300 million; $1 billion after one week, according to a report from the a Michigan-based research firm Anderson Economic Group. U.S. rail operator Union Pacific warns of “devastating consequences” to the U.S. economy from this strike.