Canada's Freight Rail Companies Brace for Unprecedented Work Stoppage

Canada's two main freight rail companies, Canadian National Railway Co and Canadian Pacific Kansas City, plan to lock out around 10,000 workers, causing a significant work stoppage. This will disrupt rail freight movement, impacting supply chains and trade across North America, with severe consequences for various industries.

Canada's two primary freight rail companies, Canadian National Railway Co and Canadian Pacific Kansas City, are gearing up to lock out approximately 10,000 Canadian unionized workers starting Thursday at 12:01 a.m. ET. This unprecedented and simultaneous work stoppage could bring nearly all rail freight movement across the country to a standstill.

The disruptions are expected to extend beyond Canada's borders. While both companies' networks south of the border will remain operational, industry experts warn of widespread impacts on the movement of goods and commodities throughout North America, given the integrated nature of the rail networks.

A third of the traffic managed by these companies crosses into the U.S., pressing concerns on American industries relying on Canadian ports. Additionally, U.S. railroad operator Union Pacific has highlighted potentially devastating economic ramifications, with sectors like mining, agriculture, and fertilizer production already bracing for severe supply chain disruptions.

(With inputs from agencies.)