Canada tells rail companies, unions to avoid crippling stoppage

The Canadian government has told the country’s two main railway companies and the Teamsters union to work harder to reach labour deals.

The government comments came on Monday as it tries to head off a crippling transport stoppage.

Unless agreements are reached, both the Canadian National Railway (CN Rail) and Canadian Pacific Kansas City (CPKC) will shut down at the same time early on Thursday for the first time in history.

Canada – the world’s second largest country by territory – relies heavily on rail to ship grain, fertilizer and commodities, and the country’s main business lobby group estimated losses would hit  CAD$1 billion (US$733m) a day during a stoppage.

Federal mediators are working with the companies and the union, but those involved in the discussions said little progress has been made. The union says CN Rail and CPKC want to dilute safety provisions, a charge the companies deny.

In a post on the X social media network, Labour Minister Steve MacKinnon said the effects of the talks would be borne by all Canadians.

“The parties must do the hard work necessary to reach agreements at the bargaining table and prevent a full work stoppage,” he said.

MacKinnon has the power to force the union and railway companies into binding arbitration but has so far said he wants them to sort out their differences at the negotiating table.

Labour talks started early this year, but progress has been slow with both the union and the companies accusing each other of bad faith.