Canada braces for 2 railroads' looming work stoppage; some shipments already halted

Aug. 18 (UPI) -- Canada's top two freight railways are threatening to cease operations Thursday in a labor dispute that is already affecting the movement of goods not only in the nation but the United States.

Canadian railways haul more than $350 billion worth of goods and more than half of the country's total exports yearly, according to the Railway Association of Canada . Industries impacted range from farms to auto plants to ports to retailers.

On Friday , Canadian National Railway Co. and Canadian Pacific Kansas City Ltd. warned about 9,300 engineers, conductors and yard workers they will lock out employees at 12:01 a.m. Thursday unless they can reach new collective agreements with their employees.

The two companies are already refusing to ship certain goods, including perishable food and dangerous items.

"The railways are two ribbons that go east to west, and there's not much alternative if you cut those two ribbons," John Corey, president of the Freight Management Association of Canada told Global News . "The ports become useless. Nothing moves anywhere."

The association's members include port authorities, manufacturers and other large shippers.

Teamsters Canada, with more than 130,000 members, is prepared for a strike. It is affiliated International Brotherhood of Teamsters, which represents over 1.2 million workers in North America.

"The union's focus remains on negotiating in good faith and reaching agreements at the bargaining table. Whether or not that is possible is entirely up to CN and CPKC, " the union said on Aug. 8. "The Teamsters will provide 72 hours advance notice in the event of any strike action," the union

Union demands are mainly quality-of-life improvements and rail safety.

"From the very beginning, railworkers have only ever sought a fair and equitable agreement," Teamsters president Paul Boucher said in a statement Friday. "Unfortunately, both rail companies are demanding concessions that could tear families apart or jeopardize rail safety."

CN has proposed putting employees on a scheduled 40-hour workweek, with at least 10 or 12 hours of rest between shifts - depending on whether they're at home or away - and two or three consecutive days off each week, in compliance with the law.Starting last Friday, Canadian National Railway Co. schedules show it is barring container imports that originate at some ports, including New York City.

With CPKC after Friday, no domestic refrigerated containers will be allowed into CPKC terminals from Vancouver to Saint John, New Brunwick to Laredo, Texas, according to a "wind-down schedule" obtained by The Canadian Press.

CPKC stopped accepting containers loaded with dangerous goods Thursday, according to a customer notice. As of Saturday, the company is rejecting all "security-sensitive" materials -- fertilizers and explosives -- and time-sensitive items, such as perishable food.

The two companies are also beginning to halt shipments that need cooler temperatures, such as meat and medicine.

Despite the possibility of a lockout/strike, both sides remain at the bargaining table after weeks of deadlock over scheduling and wages.

On Thursday, Federal Labor Minister Steven MacKinnon rejected a request from CN to impose binding arbitration.

Some businesses rely exclusively on rail.

"We're already in a strike for chlorine," Alan Robinson, commercial vice president at Chemtrade Logistics Inc., said in a report by CTV News. "You will have boiled water across all Canada and the western U.S.

The company provides chlorine for 40% of western Canada's drinking water and much of the western United States.

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

"You're looking at seven to 10 days once they don't have shipments before they're in trouble," said Bob Masterson, CEO at the Chemistry Industry Association of Canada. Most municipalities also have a few more days' worth of treated water in storage tanks, he added.

Farmers also are impacted.

"With producers going to the field currently for some of the spring crops, and as we head into the harvest season, it puts a real strain on our handling facilities and being able to make sure that we get our crop to port in time to meet those deadlines," Jill Verwey, president of Keystone Agricultural Producers (KAP), told 680 CJOB's

"The timing couldn't be any worse on a system that has gone through some real challenges as far as trying to meet some supply demands."

In Saskatchewan, the provincial government is concerned.

"This will have a great impact not only on farmers and ranchers here in the province of Saskatchewan but the whole entire economy," Saskatchewan Agriculture Minister David Merit said.

"They do depend on a certain amount of grain coming off the combine going straight to the elevators and off to the ports for shipment, because that's where they get paid."

The auto industry also will be impacted.