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Canada含羞草研究社檚 railways halt shipments as lockout threat looms large

Bargaining tensions rise in deadlock over scheduling and wages
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CN rail trains are shown at the CN MacMillan Yard in Vaughan, Ont., on Monday, June 20, 2022. THE CANADIAN PRESS/Nathan Denette

The country含羞草研究社檚 two main freight railways are turning away a growing number of goods ahead of a potential work stoppage next week that could snarl supply chains and disrupt industry.

Canadian National Railway Co. schedules show that, starting Friday, it is barring container imports that originate at some ports, including New York City.

CN and Canadian Pacific Kansas City Ltd. are also beginning to halt shipments that need cooler temperatures, such as meat and medicine, to avoid seeing stranded loads go bad should a work stoppage occur.

The two rail companies have warned that 9,300 engineers, conductors and yard workers will be locked out at 12:01 a.m. on Thursday unless they can reach new collective agreements, while the union has also said it is poised for a strike.

Both sides remain at the bargaining table after weeks of deadlock over scheduling and wages, with shipments of chlorine for drinking water already halted as part of a phased shutdown poised to progress even further next week.

Federal Labour Minister Steven MacKinnon on Thursday rejected a request from CN to impose binding arbitration as the negotiating clock ticks down.

Industry players, including chemical producers, are growing more alarmed by the day.

含羞草研究社淲e含羞草研究社檙e already in a strike for chlorine,含羞草研究社 said Alan Robinson, commercial vice-president at Chemtrade Logistics Inc. The company says it provides chlorine for 40 per cent of Western Canada含羞草研究社檚 drinking water, as well as much of the western United States.

Its product cannot move by truck or ship, he noted, and safety regulations limit the amount that can be stockpiled.

含羞草研究社淵ou will have boiled water across all Canada and the western U.S.,含羞草研究社 Robinson warned.

The White House and U.S. Environmental Protection Agency both reached out to the Toronto-based company this week with concerns about municipal water treatment, he said.

含羞草研究社淵ou含羞草研究社檙e looking at seven to 10 days once they don含羞草研究社檛 have shipments before they含羞草研究社檙e in trouble,含羞草研究社 said Bob Masterson, CEO at the Chemistry Industry Association of Canada. Most municipalities also have a few more days含羞草研究社 worth of treated water in storage tanks, he added.

Both railways began a detailed process of applying the brakes to freight flows this week.

After Friday, no domestic refrigerated containers will be allowed into CPKC terminals 含羞草研究社 from Vancouver to Saint John, N.B., to Laredo, Texas 含羞草研究社 according to a 含羞草研究社渨ind-down schedule含羞草研究社 obtained by The Canadian Press.

CPKC has also broadened its ban on hazardous materials shipments.

It stopped accepting containers loaded with dangerous goods on Thursday, according to a customer notice.

As of Saturday, the company is rejecting all 含羞草研究社渟ecurity-sensitive含羞草研究社 materials 含羞草研究社 fertilizers and explosives, for example 含羞草研究社 and time-sensitive items, such as perishable food. The embargo expands on a ban on poisonous and toxic inhalation substances from earlier in the week.

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