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

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," Trudeau said, 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 didn't 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 aren't holding up an agreement. Talks were continuing Wednesday in Montreal, where Canadian National is based, and in Calgary, Alberta, where CPKC has headquarters.

In Calgary, Finance Minister Chrystia Freeland said the failure to reach a deal before the deadline would be akin to committing self harm to the economy. She added the railroads and the union need to "recognize the country has no patience with dillydallying right now....They need to get a deal done with alacrity."

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 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 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 14:02 ET (18:02 GMT)

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