Canadian rail union authorizes strike that could start tomorrow

August 21, 2024 at 08:52PM
Canadian rail transport could be halted as soon as tomorrow.

There are two rail lines crossing Canada — CN and CP — and they handle virtually all freight in the country. Never before have both been in line to strike at the same time but talks have been ongoing since 2023 and now the companies say they will lock out workers tomorrow. That has been followed by a strike vote by the union.

The Minister of Labour met with both parties in an effort to bridge a deal. He also has powers to order binding arbitration, something CN has pushed for. The government could also introduce back-to-work legislation.

A shutdown will cripple Canadian transport but also have effects in the US, with networks integrated and raw materials often flowing south.

The move isn’t entirely unexpected but if actions continue for more than a week, they could start to bite. Moreover, the disruptions from this would reverberate through economic data for months; skewing the signals.

This article was written by Adam Button at www.forexlive.com.