Ontario Premier Doug Ford is calling on Canada’s two main railway companies to get back to the negotiation table, only hours after they began a strike affecting thousands of commuters.
In a Thursday morning post on X, Ford urged Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC) to reach a deal as soon as possible, for fear of the economy worsening due to the labour dispute.
“The rail shutdown at CN and CPKC is already costing workers, transit users and businesses across the country, and we cannot afford to let things get worse,” Ford said on the platform.
“Both the employers and union leadership should get back to the table at once so they can reach a fair deal to end this shutdown and get people and goods moving once again.”
As of midnight on Thursday, freight trains and some commuter train lines across the country have come to a halt, after the rail companies locked out employed members of the union Teamsters Canada Rail Conference (TCRC).
Currently, there is no GO train service on the Milton line and at Hamilton GO Centre due to the labour disruptions. About 7,500 people use the Milton line, which runs through Mississauga on a daily basis, while 600 people rely on the Hamilton GO station.
The companies have been in negotiations with the union over the last nine months, both proposing renewed agreements with the rail traffic controllers to increase wages. In separate online statements, both companies agreed that they bargained in good faith, but ultimately could not agree on a fair deal in time.
“Despite our best efforts, it is clear that a negotiated outcome with the TCRC is not within reach,” the CPKC said in a statement.
“The TCRC leadership continues to make unrealistic demands that would fundamentally impair the railway’s ability to serve our customers with a reliable and cost-competitive transportation service.”
Alongside wage increases, CN says it also proposed a pilot project that would allow for employees to work less days in a month. After not coming to a binding agreement, CN says it had no other choice but to finalize a “safe and orderly shutdown.”
“[CN] consistently proposed serious offers, with better pay, improved rest, and more predictable schedules. The Teamsters have not shown any urgency or desire to reach a deal that is good for employees, the company and the economy,” CN said in a statement.
TCRC, which represents roughly 10,000 employees at CN and CPKC, said it has put forth multiple offers, none of which were seriously considered by either company.
“Throughout this process, CN and CPKC have shown themselves willing to compromise rail safety and tear families apart to earn an extra buck. The railroads don’t care about farmers, small businesses, supply chains, or their own employees. Their sole focus is boosting their bottom line, even if it means jeopardizing the entire economy,” TCRC President Paul Boucher said in a news release.
The work stoppage is expected to affect several industries including business groups, retail, and the agricultural sector.
Grain Growers of Canada fears that the dispute will inflict severe economic damage on the grain industry and the broader Canadian economy, estimating that the initial impact will cost grain farmers over $43 million a day in the first week alone, with losses expected to escalate to $50 million a day the week after and beyond if the stoppages continue.
“The total shutdown of Canada’s two national railways is an unprecedented crisis for the grain industry,” GCC Executive Director Kyle Larkin said in a news release on Thursday.
“With work stoppages at both CN and CPKC, our entire supply chain is at risk. This disruption is happening at the worst possible moment, during the start of harvest season, when our farmers are most dependent on our rail network.”
This is reportedly the first rail strike simultaneously involving both of Canada’s main rail companies in history.
