Canada PM Trudeau Urges Railroads, Unions to Strike Labor Deal at Bargaining Table

By Paul Vieira

OTTAWA--Canadian Prime Minister Justin Trudeau urged the country's two main railroads and their main union on Wednesday to strike new collective-bargaining agreements in the next few hours to avert a labor stoppage that threatens to disrupt cargo movement from the Pacific to the Atlantic coasts.

Both Canadian Pacific Kansas City and Canadian National Railway planned to lock out employees represented by the Teamsters Canada Rail Conference starting at 12:01 a.m. Eastern time Thursday unless new agreements are reached.

"It is in the best interest of both sides to continue doing the hard work at the table to find a negotiated resolution," said Trudeau, according to a pool report tracking his visit to a seniors' residence in western Quebec. "Millions of Canadians, of workers, of farmers, of businesses right across the country are counting on both sides to do the work and get to our resolution."

Trudeau did not respond to a question about the possibility of government intervention to stop a strike, according to the pool report. Government officials have repeatedly said they had no intention of intervening, such as referring the dispute to binding arbitration, arguing the railroads and the union carry the responsibility to reach a fair agreement.

Both the companies and Teamsters Canada say the sides are at an impasse, with the union saying the railroads are demanding concessions that threaten worker safety. The railroads have denied that. A union official said wages are not holding up an agreement.

Earlier Wednesday, a coalition of Canada's biggest business groups called on the Liberal government to take immediate action to ensure rail service is maintained.

"This is not about siding with either party; it is about standing up for Canadians. The federal government must show leadership and act before our trains--and with them, our economy--grind to a halt," said the coalition, consisting of the Canadian Chamber of Commerce, Business Council of Canada, Canadian Federation of Independent Business, and Canadian Manufacturers and Exporters.

Chicago-based Anderson Economic Group, which specializes in loss assessments during strikes and conflicts, estimates that the Canadian and U.S. economies stand to lose a collective C$403 million ($296.5 million) in a three-day labor stoppage, and about C$1.4 billion should the dispute last seven days.

Both Canadian National and CPKC started last week to wind down operations in anticipation that trains would stop moving due to a labor conflict.

Write to Paul Vieira at paul.vieira@wsj.com

(END) Dow Jones Newswires

August 21, 2024 12:29 ET (16:29 GMT)

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